IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/47815.html

Remittances and microfinance in India: Opportunities and challenges for development finance

Author

Listed:
  • Sil, Milly
  • Guha, Samapti

Abstract

With remittances to the developing countries reaching USD 251 billion in 2007, there has been a recent surge of interest to understand the effective channelization of this flow of remittances for providing a variety of financial services desirable to the poor households in the receiving regions, especially in rural pockets. An effective solution, by way of suggestion, especially by policymakers, has been a partnership between the formal money transfer agents and Micro Finance Institutions (MFIs). The remittances and MFI nexus is seen as an important tool for development finance for the poor remittance receiving households. This paper makes an attempt to explore the various opportunities as well as challenges facing MFIs in India in this regard and recommends certain necessary steps in order to consolidate the process of linking MFIs with other conventional formal institutions. Additionally, the paper proposes two models of remittance transfer and mobilisation that could be applicable to India as well as other developing countries facing similar situation.

Suggested Citation

  • Sil, Milly & Guha, Samapti, 2010. "Remittances and microfinance in India: Opportunities and challenges for development finance," MPRA Paper 47815, University Library of Munich, Germany, revised 04 Dec 2009.
    • Handle: RePEc:pra:mprapa:47815
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/47815/1/MPRA_paper_47815.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Puri, Shivani. & Ritzema, Tineke., 1999. "Migrant worker remittances, micro-finance and the informal economy : prospects and issues," ILO Working Papers 993576093402676, International Labour Organization.
    2. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339, April.
    3. repec:ilo:ilowps:357609 is not listed on IDEAS
    4. S. Irudaya Rajan, 2008. "Managing Migration in thePhilippines: Lessons for India," Working Papers id:1346, eSocialSciences.
    5. Alexander Tedeschi, Gwendolyn, 2006. "Here today, gone tomorrow: Can dynamic incentives make microfinance more flexible?," Journal of Development Economics, Elsevier, vol. 80(1), pages 84-105, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adams, Samuel & Klobodu, Edem Kwame Mensah, 2016. "Remittances, regime durability and economic growth in Sub-Saharan Africa (SSA)," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 1-8.
    2. Adela Shera & Ardita Shehaj, 2014. "Economic crisis impact on Remittances and Migration level in Albania," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 10, pages 39-54, July.
    3. Oludele Akinloye Akinboade & Anrich Daseman & Trevor Taft & Victor M.S Molobi, 2017. "Regulation, Cross Border Migrants and the Choice of Remittance Channels in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 201-214.
    4. Debelo Bedada Yadeta & Fetene Bogale Hunegnaw, 2022. "Effect of International Remittance on Economic Growth: Empirical Evidence from Ethiopia," Journal of International Migration and Integration, Springer, vol. 23(2), pages 383-402, June.
    5. Pablo Acosta & Cesar Calderón & Pablo Fajnzylber & Humberto López, 2006. "Remittances and Development in Latin America," The World Economy, Wiley Blackwell, vol. 29(7), pages 957-987, July.
    6. Léger Félix Ntienjom Mbohou, 2023. "Understanding the role of institutions in the multiple streams approach through the recognition of the diaspora as a development agent in Cameroon," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(2), pages 355-376, June.
    7. repec:spo:wpmain:info:hdl:2441/7i7knjo7kv89n9d542jjp3tg0g is not listed on IDEAS
    8. Gaia Narciso, 2015. "Labour and migration in rural Vietnam," WIDER Working Paper Series wp-2015-095, World Institute for Development Economic Research (UNU-WIDER).
    9. Gustav Ranis, 2007. "Migration, Trade, Capital and Development: Substitutes, Complements and Policies," Working Papers 950, Economic Growth Center, Yale University.
    10. Ummya Salma & Md. Fazlul Huq Khan & Md. Masum Billah, 2023. "Foreign Capital and Economic Growth: Evidence from Bangladesh," Papers 2312.04695, arXiv.org.
    11. Serdar Sayan & Ayça Tekin-Koru, 2010. "Host-Country Economic Policies and Worker Remittances to Developing Countries: The Cases of Turkey and Mexico," Chapters, in: Robert E.B. Lucas & Lyn Squire & T. N. Srinivasan (ed.), Global Exchange and Poverty, chapter 7, Edward Elgar Publishing.
    12. Sophie Brana & Yves Jégourel, 2011. "Breadth and depth of french microfinance outreach : an evaluation," Working Papers hal-00637689, HAL.
    13. Bahar Rezaei & Sriram Dasu & Reza Ahmadi, 2017. "Optimal Group Size in Joint Liability Contracts," Decision Analysis, INFORMS, vol. 14(3), pages 204-225, September.
    14. Moises Neil V. Serino & Donghun Kim, 2011. "How Do International Remittances Affect Poverty In Developing Countries? A Quantile Regression Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(4), pages 17-40, December.
    15. Salazar, Gabriela L., 2008. "An Analysis of Repayment Among Clients of the Microfinance Institution Esperanza International, Dominican Republic," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2008, pages 1-25.
    16. Edsel L. Beja Jr, 2011. "Do international remittances cause Dutch disease?," Migration Letters, Migration Letters, vol. 8(2), pages 132-140, October.
    17. KC.Zachariah & S.Irudaya Rajan, 2007. "Economic and social dynamics of migration in Kerala, 1999-2004: Analysis of panel data," Centre for Development Studies, Trivendrum Working Papers 384, Centre for Development Studies, Trivendrum, India.
    18. Xavier Giné & Pamela Jakiela & Dean Karlan & Jonathan Morduch, 2010. "Microfinance Games," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 60-95, July.
    19. Slobodan Djajic & Michael S. Michael, 2009. "Temporary Migration Policies and Welfare of the Host and Source Countries: A Game-Theoretic Approach," CESifo Working Paper Series 2811, CESifo.
    20. Beatriz Armendáriz & Ariane Szafarz, 2011. "On Mission Drift in Microfinance Institutions," World Scientific Book Chapters, in: Beatriz Armendáriz & Marc Labie (ed.), The Handbook Of Microfinance, chapter 16, pages 341-366, World Scientific Publishing Co. Pte. Ltd..
    21. Gaia Narciso, 2015. "Labour and migration in rural Vietnam," WIDER Working Paper Series 095, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D6 - Microeconomics - - Welfare Economics
    • G0 - Financial Economics - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:47815. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.