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Remittances and Development : Lessons from Latin America


  • Pablo Fajnzylber
  • J. Humberto López


There are four main messages that emerge from this book. First, no matter how authors look at the issue, remittances are extremely important in the Latin American context. With remittances estimated to have topped more than US$50 billion in 2006, Latin America is now the main destination of these flows. Second, remittances generate a number of important positive contributions to economic development. In particular, they tend to reduce poverty and inequality in recipient countries, as well as increase aggregate investment and growth. Third, even though remittances have a positive impact on the development indicators of the recipient economies, the magnitude of the estimated changes tends to be modest. Fourth, policy makers may take actions to enhance the development impact of remittances. One important message of this book is that the way countries benefit from remittances appears to be positively related to the countries' own institutional and macroeconomic environments.

Suggested Citation

  • Pablo Fajnzylber & J. Humberto López, 2008. "Remittances and Development : Lessons from Latin America," World Bank Publications, The World Bank, number 6911, March.
  • Handle: RePEc:wbk:wbpubs:6911

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    References listed on IDEAS

    1. Levin, Andrew & Raut, Lakshmi K, 1997. "Complementarities between Exports and Human Capital in Economic Growth: Evidence from the Semi-industrialized Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 46(1), pages 155-174, October.
    2. David De Ferranti & Guillermo E. Perry & Indermit Gill & J. Luis Guasch & William F. Maloney & Carolina Sanchez-Paramo & Norbert Schady, 2003. "Closing the Gap in Education and Technology," World Bank Publications, The World Bank, number 15168, March.
    3. Guillermo E. Perry & Omar S. Arias & J. Humberto López & William F. Maloney & Luis Servén, 2006. "Poverty Reduction and Growth : Virtuous and Vicious Circles," World Bank Publications, The World Bank, number 6997.
    4. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    5. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    6. Norman Loayza & Pablo Fajnzylber & César Calderón, 2005. "Economic Growth in Latin America and the Caribbean : Stylized Facts, Explanations, and Forecasts," World Bank Publications, The World Bank, number 7315.
    7. Bekaert, Geert & Harvey, Campbell R. & Lundblad, Christian, 2006. "Growth volatility and financial liberalization," Journal of International Money and Finance, Elsevier, vol. 25(3), pages 370-403, April.
    8. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications, The World Bank, number 7339.
    9. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    10. César Calderón & Rodrigo Fuentes, 2006. "¿Cuánto explican las reformas y la calidad de las instituciones del crecimiento chileno?: una comparación internacional," Monetaria, Centro de Estudios Monetarios Latinoamericanos, vol. 0(2), pages 119-149, abril-jun.
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