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The demographic, economic and financial determinants of international remittances in developing countries

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  • Adams, Richard H., Jr.

Abstract

What causes developing countries to receive different levels of international remittances? This paper addresses this question by using new data on such variables as the skill composition of migrants, poverty, and interest and exchange rates to examine the determinants of remittances. The paper finds that the skill composition of migrants does matter in remittance determination. Countries which export a larger share of high-skilled (educated) migrants receive less per capita remittances than countries which export a larger proportion of low-skilled migrants. It also finds that the level of poverty in a labor-sending country does not have a positive impact on the level of remittances received.

Suggested Citation

  • Adams, Richard H., Jr., 2008. "The demographic, economic and financial determinants of international remittances in developing countries," Policy Research Working Paper Series 4583, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4583
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    References listed on IDEAS

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    20. Adams, Richard H. Jr., 2004. "Remittances and poverty in Guatemala," Policy Research Working Paper Series 3418, The World Bank.
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    Cited by:

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    2. Kim, Kijin & Ardaniel, Zemma & Kikkawa, Aiko & Endriga, Benjamin, 2022. "Bilateral Remittance Inflows to Asia and the Pacific: Countercyclicality and Motivations to Remit," ADBI Working Papers 1315, Asian Development Bank Institute.
    3. Sankar Mukhopadhyay & Miaomiao Zou, 2020. "Will Skill-Based Immigration Policies Lead to Lower Remittances? An Analysis of the Relations between Education, Sponsorship, and Remittances," Journal of Development Studies, Taylor & Francis Journals, vol. 56(3), pages 489-508, March.
    4. Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.
    5. Alex Julca, 2013. "Can Immigrant Remittances Support Development Finance?," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(3), pages 365-380, May.
    6. Kamel Jlassi, 2015. "Modelling and Forecasting of Tunisian Current Account: Aggregate versus Disaggregate Approach," IHEID Working Papers 13-2015, Economics Section, The Graduate Institute of International Studies.
    7. Rizwana Siddiqui, 2013. "Impact Evaluation of Remittances for Pakistan: Propensity Score Matching Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(1), pages 17-44.
    8. Maëlan Le Goff & Sara Salomone, 2016. "Remittances and the Changing Composition of Migration," The World Economy, Wiley Blackwell, vol. 39(4), pages 513-529, April.
    9. Musa Essayyad & Mercy Palamuleni & Chandrakala Satyal, 2018. "Remittances and Real Exchange Rates in South Asia: The Case of Nepal," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(10), pages 1226-1238, October.
    10. Maëlan Le Goff & Sara Salomone, 2015. "Changes in Migration Patterns and Remittances: Do Females and Skilled Migrants Remit More?," Working Papers 2015-15, CEPII research center.
    11. Fwasa K Singogo & Emmanuel Ziramba, 2019. "An Analysis of Macroeconomic Determinants of Remittances in Southern Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 11(4), pages 43-53.
    12. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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    Keywords

    Population Policies; Remittances; Debt Markets; Access to Finance; Rural Poverty Reduction;
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