An Exploratory Study of the Use of Migrant Remittances at the Household Level in Barbados

Abstract

An Exploratory Study of the Use of Migrant Remittances at the Household Level in Barbados Anthony Wood, Shari Watson Abstract Remittances have grown significantly over the last decade worldwide resulting in them becoming a major source of external development finance. In developing countries which account for approximately 74% of all remittances received worldwide, it is recognized that remittances play an essential role in their economic development. With the increasing importance of remittances as a source of capital flows to developing countries there has been a proliferation of research on various aspects of remittances. While studies for the wider Caribbean have focused on multiple aspects of remittances, research on the Barbadian economy has concentrated on the macroeconomic aspect of remittances and their impact on the economy. This paper takes a different approach by examining remittances to Barbados from a microeconomic perspective. In this connection, the paper seeks to determine the demographic profile of persons in Barbados receiving remittances and the primary uses of these remittances. Data were obtained via a survey conducted at the money transfer operator, Money Gram, between April and June 2013. The key finding is that remittances were used mainly for consumption purposes, in particular purchasing food and paying utility bills. This result corroborates the findings of other studies on developing economies. Full Text: PDF DOI: 10.15640/jeds.v3n1a3