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South-South Migration and Remittances

Author

Listed:
  • William Shaw
  • Dilip Ratha

Abstract

The impact of South-South migration on the income of migrants and natives is smaller than for South-North migration. However, even small increases in income can have substantial welfare implications for the poor, and cross-migration can improve the match between skills and requirements in the countries involved, thus raising efficiency and welfare. The costs of South-South remittances (where such remittances are permitted) are even higher than those of North-South remittances, because of lack of competition in the remittance market, a lack of financial development in general, and high foreign exchange commissions at both ends of the transaction. These findings suggest that policymakers should pay attention to the complex challenges that developing countries face not only as the countries of origin of migrants, but also as destinations. Designing appropriate policies, however, will require considerable efforts to improve data, and careful analysis of the socioeconomic impact of migration on wages, income distribution, gender, health, and migrants’ rights.

Suggested Citation

  • William Shaw & Dilip Ratha, 2016. "South-South Migration and Remittances," Working Papers id:11137, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:11137
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    References listed on IDEAS

    as
    1. Hatton, Timothy J. & Williamson, Jeffrey G, 2002. "What Fundamentals Drive World Migration?," CEPR Discussion Papers 3559, C.E.P.R. Discussion Papers.
    2. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    3. Beals, Ralph E & Menezes, C F, 1970. "Migrant Labour and Agricultural Output in Ghana," Oxford Economic Papers, Oxford University Press, vol. 22(1), pages 109-127, March.
    4. McKenzie, David, 2007. "Paper Walls Are Easier to Tear Down: Passport Costs and Legal Barriers to Emigration," World Development, Elsevier, vol. 35(11), pages 2026-2039, November.
    5. repec:ilo:ilowps:355190 is not listed on IDEAS
    6. J.S. Eades, 2005. "East Asia," Chapters,in: A Handbook of Economic Anthropology, chapter 34 Edward Elgar Publishing.
    7. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-330, June.
    8. Xaba, Jantjie. & Horn, Pat. & Motala, Shirin. & Singh, Andrea., 2002. "Informal sector in Sub-Saharan Africa," ILO Working Papers 993551903402676, International Labour Organization.
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