Migrant Remittances Research Articles

Migration and Economic Development: The Role of Migrant Flows in Shaping Turkey’s Emerging Economy and Uncovering Hidden Conflicts and Challenges

This research examines the economic impact of migration on Turkey's emerging economy, with a particular focus on the contributions of migrant remittances, labor market dynamics, and the socio-political challenges associated with large-scale migrant flows. By employing econometric models and field research, the study explores the relationship between remittance inflows and key economic indicators such as GDP growth, employment rates, and poverty reduction. Additionally, the research uncovers hidden conflicts and social tensions that arise from migration, including labor market inequalities and integration challenges faced by both migrants and Turkish workers. The project evaluates government policies, such as the EU-Turkey refugee agreement, and their effects on economic development and social stability. Field research in migrant-receiving communities reveals the complexities of labor competition and the social dynamics created by migrant dependency in sectors such as agriculture and construction. Findings highlight the need for inclusive migration policies that balance the economic benefits of remittances with the social integration challenges faced by migrant populations. This study also advocates for stronger labor protections and regulatory reforms to mitigate tensions and reduce exploitation in low-wage sectors. The research contributes to the broader understanding of migration’s role in shaping Turkey’s economy and provides insights for policymakers seeking to address both the economic and social dimensions of migration.

Income level as a differentiating factor in assessing the impact of migration on economic growth

Aim. To study the nature of the impact of migration on economic growth depending on the level of gross domestic product (GDP) per capita and the direction of migration flows.Objectives. Study of theoretical approaches to the research of the impact of labor migration on economic growth; analysis of factors that differentiate the assessment of the impact of migration flows on economic growth indicators; collection and analysis of statistical information for the development of econometric models for assessing the impact of migration on economic growth.Methods. The authors used general scientific methods of research, such as deduction, analysis, synthesis. Statistical methods of data analysis were applied, linear regression models were built.Results. The research shows that the impact of migration on economic growth in countries with different levels of GDP per capita is due to different factors. For developed economies, the positive factors of the impact of immigration on economic growth are replenishment of scarce labor resources; improvement of labor force quality due to structural changes caused by the transition of the permanent working-age population to new professional fields. For countries with a low level of GDP per capita we can identify a number of positive factors of the impact of emigration (with a negative balance of migration growth) on economic growth. In particular, the outflow of excess labor force creates conditions for reducing unemployment; remittances of migrants support effective demand in the consumer market, contribute to the development of the banking system and investment in the country of origin; the expansion of social ties leads to the development of human capital, increasing the potential for innovation.Conclusions. The value of correlation coefficients in the constructed regression models indicates that there is a weak correlation between the variable characterizing the volume and nature of migration in the country (the ratio of migration balance to population) and the variable characterizing economic growth (GDP per capita at purchasing power parity) only for the group of high-income countries. There is little statistical dependence of these variables for other groups of countries. With regard to econometric modeling of the impact of migration on economic growth, this means that it is necessary to develop separate models for each group of countries depending on the level of GDP per capita and the direction of migration flows.

The moderation effect of institutional quality on the nexus between migrant remittance and financial inclusion in West Africa

BACKGROUND: Migrants' remittances are critical in financing the economies of Africa and the West African region, in addition to FDI and ODA. It is also a significant driver of financial inclusion. OBJECTIVE: This paper assessed the moderating role of institutional quality on migrants' remittances and financial inclusion in West Africa during 2004–2023. METHODS: Secondary data was used for this study, sourced from the World Bank’s World Development Indicators (WDI), the World Governance Indicator (WGI), and the IMF’s Financial Access Survey (FAS), 2023. This study employed the Panel Fixed Effects (PFE) estimation technique, which accounts for Driscoll and Kraay's (1998) standard error. To ensure the robustness of the findings, the analysis was augmented with the utilisation of feasible generalised least squares (FGLS). RESULTS: There was an overall positive impact of institutional quality on financial inclusion (FI), at a significant rate of 120.8%, accounting for deposit-taking microfinance institutions, thereby highlighting that institutions play a crucial part in improving financial inclusion in West Africa. Also, the moderating effect of institutional quality had a more positive impact on microfinance institutions than commercial banks, at a significant rate of 16.2%. CONCLUSION: In summary, attention should be given to establishing more microfinance institutions as they serve as a better remittance distribution channel when compared to commercial banks, emphasising enhancing quality in financial services delivery. This also encourages more people to be financially included, thereby making better economic use of the remittance received in West Africa.

Migrant Remittances and Human Security

The estimated number of people who live in a country other than their country of birth has raised over the past five decades. With the rising number of migrants around the world, one of the significant implications of migrant movements, international remittances have increased over time and exceeded the level of official development aid described as government assistance dedicated to advance the economic development and prosperity of developing countries. Consistent with the rising level of international remittances, a proliferation of research examining the impact of remittances on development in remittance-recipient countries has occurred in recent years. While the effects of remittances upon development in recipient states have been broadly studied, the relationship between remittances and human security in remittance-recipient countries has been insufficiently investigated. In order to fill this gap, this study theoretically discusses and empirically examines the link between migrant remittances and human security. It argues that remittances enhance human security by providing remittance-recipients with extra income to meet their socioeconomic needs and increase their personal safety, which enable them to free from want and free from fear. The findings of quantitative analysis conducted based on a global data set show evidence that migrant remittances improve human security in remittance-recipient countries.

The impact of migrant remittances on poverty reduction in Bangladesh

AbstractThis study aims to assess the impact of international remittances on poverty alleviation in Bangladeshi migrant families using household surveys. A Multi‐Stage Stratified Random Sampling approach was employed to collect data from four upazilas of the Tangail and Comilla districts. The propensity score matching (PSM) method is used to evaluate the impact of returnee workers' remittances on household economic welfare that to ensure poverty alleviation. The average treatment effect in treated outcomes using the PSM technique demonstrates that the land asset, income, and expenditure scenario of migrant households has improved significantly compared to nonmigrants, indicating a notable reduction in poverty. Moreover, international remittances also improved savings and investment status substantially, along with wealth accrual and land possession. Hence, international remittances proved to be a boon for migrant families as remittances drove returnee households towards lower poverty in Bangladesh. Intervention programs that include financial literacy components (including digital banking) for safe money transfer and low interest bank loans for migration costs are required to maintain remittance inflows and sustainable reductions in poverty.

Immigration remittances, agricultural investment, and household wealth accumulation

In this study, we will focus on examining how migrant remittances promote agricultural investment and increase household wealth accumulation. We find that migrant remittances have a positive effect on agricultural investment and household wealth accumulation. At the same time, we find that education levels have a moderating effect on migrant remittances, enhancing their impact on agricultural investment and household wealth. We also find that remittances can help, especially when the household situation is worse. On this basis, policymakers should simplify the procedures for migrants to send money, increase the channels for remittances, and make it more convenient. At the same time, education levels, especially financial literacy, should be improved, which will facilitate increased investment in agriculture and household wealth accumulation..

Remitting amid autocracy: Venezuelan migrant remittances to relatives enduring widespread structural violence

Homeland conditions shape how migrants and refugees perceive the purpose and impact of their remittances (i.e. financial support). Countries of origin with low violence and stable conditions allow migrants to remit with hopes of improving their non-migrant relatives’ long-term material circumstances, while homelands with armed conflict limit remittance objectives to securing recipients’ immediate safety and basic survival. However, scholarship has under-theorized how homelands with widespread structural violence–economic devastation resulting in deprivation for most of the population–impact migrants’ remittance practices and perceptions. Drawing on in-depth interviews with forced Venezuelan migrants in Chile and Argentina–whose homeland has an emerging autocrat and economic sanctions that have resulted in widespread structural violence–we find that interviewees are highly concerned about relatives’ survival in Venezuela. They remit with resignation to secure relatives’ bare subsistence while grappling with their inability to counter the economic deterioration, infrastructural decay, and essential goods shortages that are decreasing their relatives’ lifespan. Broadly, findings indicate that widespread structural violence reshapes migrants’ transnational care; as deprivation spreads in the homeland, migrants are increasingly aware that the impact of their remittances is diminishing and seek to fulfill their relatives’ immediate basic needs.

Migrant Remittances and Conflicts in Sub-Saharan African Countries: Effects and Transmission Channels

Migrant Remittances and Conflicts in Sub-Saharan African Countries: Effects and Transmission Channels

How altruism works during a pandemic: Examining the roles of financial support and degrees of individual altruism on international remittance

AbstractWhile the importance of international remittances has been recognised globally, understanding how public subsidies and the degree of individual altruism affect remittance behaviour remains limited. Although international remittances were predicted to decline drastically in the early stages of the COVID‐19 pandemic, remittance data proved that they were ultimately resilient to the anticipated negative shock of 2020. Potential reasons include altruistic motivations among migrants and economic stimulus programmes in large economies; however, a detailed investigation from a micro‐perspective is lacking and urgently needed. This study examines the impact of financial support in host and home countries and individual altruism on international remittances using unique data from foreign care workers in Japan. Our panel data estimation shows that emergency cash transfers from the host country positively affected migrant remittance amounts; however, no crowding‐out effects were observed due to subsidies from home governments. The heterogeneous analysis also reveals that highly altruistic remitters were more likely to send money home after receiving cash transfers in the host country. The results support the claims of international organisations that the resilience of remittances was supported by altruism and public financial support during the pandemic.

Migrant Remittances and Financial Sector Development: New Evidence from Nigeria

This paper analyzes the impact of remittances on financial sector development in Nigeria using data for more than four decades (1980‐2022). The study applies the error correction mechanism because of its ease of implementation, power and robustness as well as its role in explaining stationarity among economic variables. The empirical analysis shows that remittances promote financial sector development during the period with evidence that policies and programmes to improve the financial sector in the previous period impact significantly on the financial sector. The result also shows that increases in export and gross national product per capita promotes financial sector development in a positive and significant manner while high inflationary trend is detrimental to financial sector development.

How migrant remittances respond to homeland crises: the case of Cabo Verde and its emigrants

ABSTRACT Many countries rely on the cash and non-cash remittances their migrants abroad send back. But do migrants increase or decrease these remittances in times of socioeconomic crises back home? This study examines the remittance behaviour of Cabo Verdean migrants in response to economic shocks and natural disasters back in their homeland. With one of the highest migration rates in the world, Cabo Verde’s migrants, and the money and goods they send back, have been vital in the past. Facing socioeconomic distress from the 2020 global COVID-19 pandemic, how migrants behave in times of crisis is a critical and urgent question. The study finds that Cabo Verde’s migrants increase their remittances during every major episode of economic crisis, including the COVID-19 global pandemic. The increases are substantial compared to remittance patterns before and after the crisis. The analysis, however, also points to the changing nature of migrant ties to the homeland.

Migrant remittances and the adoption of information and communication technology

In this study, we demonstrate that migrant families adopt ICT more than non-migrant households, the diffusion is higher among the recipients of remittances resulting from the long-duration, long-distance international migration than the short-duration, short-distance migration, and that foreign remittance recipients adopt advanced technologies to a greater extent compared to domestic remittance-recipients. We empirically test these hypotheses by using data on 160,624 households from the 2019 to 20 round of the Pakistan Social and Living Standards Measurement Survey and employing an instrumental-variable strategy as well as generalized two-step Heckman and Augmented Inverse Probability Weighting estimators. We come up with evidence of the significant effects of remittances on ICT adoption. Households with at least one domestic or international migrant, on average have 0.27 per capita mobile ownership and 0.12 higher probability of having internet at home compared to non-recipient households. This effect is visible more among international-remittance than domestic-remittance-receiving households. ICT adoption also increases with the amount received. We find that remittances accelerate the adoption of smartphones and social media apps. Besides, while international remittances substantially increase the use of smartphones, internet and social media apps, domestic remittances mainly improve basic phone adoption. Remittances also help reduce the rural-urban and male-female digital divide.

“Revealing the future”: an ARIMA model analysis for predicting remittance inflows

PurposeThe purpose of this research is to develop a predictive model that can estimate the volume of remittances channeled toward Yemen’s economic reconstruction efforts.Design/methodology/approachThis study utilized a time-series dataset encompassing remittance inflows into Yemen’s economy from 1990 to 2022. The Box-Jenkins autoregressive integrated moving average (ARIMA) methodology was employed to forecast remittance inflows for the period 2023 to 2030.FindingsThe study’s findings indicate a downward trajectory in remittance inflows over the next eight years, with projections suggesting a potential decline to 4.122% of Yemen’s gross domestic product by the end of 2030. This significant decrease in remittance inflows highlights the immediate need for concrete steps from economic policymakers to curb the potential decline in remittance inflows and its impact on Yemen’s economic recovery efforts.Originality/valueThe impact of global remittance inflows on various macroeconomic and microeconomic factors has long been of interest to researchers, policymakers, and academics. Yemen has been embroiled in violent clashes over a decade, leading to a fragmentation of central authority and the formation of distinct local alliances. In such prolonged turmoil, foreign aid often falls short, providing only temporary relief for basic needs. Consequently, the importance of migrant remittances in sustaining communities affected by conflict and disasters has increased. Remittances have played a crucial role in fostering economic progress and improving social services for families transitioning from conflict to peace. Therefore, this study aims to estimate and forecast the volume of remittances flowing into Yemen, to assist in the nation’s economic reconstruction.

Unraveling the dynamics: macroeconomic drivers of equity market development in Sub-Saharan Africa

PurposeThe aim of this paper is to contribute to empirical research by identifying the key macroeconomic drivers of equity market development in Sub-Saharan Africa (SSA) and to ascertain if banking sector development complements equity market development in the SSA region.Design/methodology/approachThe study employed the dynamic panel data approach using the pool mean group (PMG). The sample covered is twenty-seven (27) SSA countries between the period 2000 to 2020.FindingsThe result suggests that banking sector development, economic growth, migrant remittance and trade openness are the key drivers of equity market development in the SSA region. The study also revealed that banking sector development complements equity market development in the SSA region.Originality/valueThe use of robust measure in measuring equity market development (i.e. ratio of portfolio equity to gross domestic product) in ascertaining the macroeconomic drivers of equity market development. Likewise, exploring whether banking sector development complements equity market development in the SSA region makes the paper more unique, especially using the ratio of bank credit to bank deposit as a measure banking sector development.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0005

Machine Learning to Enhance the Detection of Terrorist Financing and Suspicious Transactions in Migrant Remittances

Migrant remittances have become significant in poverty alleviation and microeconomic development in low-income countries. However, the ease of conducting global migrant remittance transfers has also introduced the risk of misuse by terrorist organizations to quickly move and conceal operational funds, facilitating terrorism financing. This study aims to develop an unsupervised machine learning algorithm capable of detecting suspicious financial transactions associated with terrorist financing in migrant remittances. To achieve this goal, a structural equation model (SEM) and an outlier detection algorithm were developed to analyze and identify suspicious transactions among the financial activities of migrants residing in Belgium. The results show that the SEM model classifies a significantly high number of transactions as suspicious, making it prone to detecting false positives. Finally, the study developed an ensemble outlier detection algorithm that comprises an isolation forest (IF) and a local outlier factor (LOF) to detect suspicious transactions in the same dataset. The model performed exceptionally well, being able to detect over 90% of suspicious transactions.

The impact of migrant remittances on economic development: empirical evidence from the developing world

The impact of migrant remittances on economic development: empirical evidence from the developing world

INTERACTIVE EFFECT OF MIGRANT REMITTANCES AND FINANCIAL MARKET DEVELOPMENT ON GROWTH IN SUB-SAHARAN AFRICA

Purpose: The aim of this study is to examine the interactive effect of migrant remittances and financial market development on growth in Sub-Saharan Africa (SSA). Design/Methodology/Approach: The study uses the dynamic heterogeneous panel data approach-the pool mean group (PMG) technique in analyzing data obtained from twenty-seven countries covering the period 2000- 2020. Findings: The study findings reveal that the interactive effect of migrant remittances and financial market development on growth in the region is positive and significant, implying a complementarity relationship. Originality: The value of the study is represented by the measurement of key variables like financial market development (i.e. equity market development and banking sector development). Also, investigating whether the interactive effect of migrant remittances and financial market development on growth in Sub-Saharan Africa (SSA) is complementarity or substitutes is of importance to guide policymakers in the region.

Emigration of Medical Personnel from Tajikistan Abroad: Causes and Consequences

The article examines the brain drain as a process of emigration of qualified specialists from Tajikistan, the reasons for the outflow of Tajik doctors from Tajikistan, the scale and resettlement of Tajik doctors abroad. As well as the consequences of medical emigration for Tajikistan and the author's recommendation on the preservation and involvement of Tajik doctors in Tajikistan. After gaining independence, the main types of emigration from Tajikistan were labor emigration. But the economic deterioration of Tajikistan is forcing highly qualified citizens of the republic to migrate.
 The beginning of the outflow of emigration of highly qualified citizens of Tajikistan is associated with the outbreak of the civil war in the republic, when most of the Russian engineers, doctors, teachers, as well as skilled workers in the industrial sector began to leave the country during the outbreak of the war. During the civil war, Russia and Kazakhstan became the main channels of emigration of highly qualified citizens of Tajikistan.
 But in recent years, among the highly qualified citizens of Tajikistan, medical personnel have begun to migrate the most. The main areas of migration of medical personnel from Tajikistan is Russia. Low wages in the country are among the main reasons for the emigration of doctors from Tajikistan.
 Although the Government of Tajikistan is interested in the emigration of Tajiks abroad, since half of the country's GDP is made up of migrant remittances, Tajikistan will receive more negative consequences from the emigration of medical personnel than income, since the health of the population of Tajikistan depends on medical personnel.
 The purpose of the article is to identify the factors and scale of emigration of medical personnel from Tajikistan, as well as the consequences of emigration of medical personnel on the socio–economic development of Tajikistan.

Impact of COVID-19 on migrant remittances in South Asia

ABSTRACT This paper investigates the impact of COVID-19 on remittance flows to South Asia. Using a monthly panel data set of five South Asian countries (namely Bangladesh, India, Nepal, Pakistan, and Sri Lanka) for the period January 2020 to August 2021. This study, applying the pooled ordinary least square estimation method, generally, finds a positive impact of COVID-19 on remittance flows to South Asia. Further investigation reveals the existence of a non-linear (inverted U-shaped) relationship between COVID-19 cases and remittances. This means that with the initial covid spread leading to temporary restrictions affecting economic activity in home countries, remittances start increasing to support families’ income and consumption affected by the regulations. However, the very high levels of infection rates leading to continued lockdowns in home countries decrease the incentives for investment with substantially reduced economic activities, thus decreasing aggregate remittances. We found similar results when replacing infection rates with deaths from COVID-19. However, increasing COVID-19 infection rates and deaths in migrants’ host countries reduce remittances to migrants’ home countries.

Are Institutions Improving the Contribution of Remittances to Economic Growth? A Panel Data Analysis

This paper is to test the hypothesis that better governance can improve the response of remittances on economic growth. Using panel data for 12 Middle East and North Africa (MENA) countries over the period of 2002 to 2020, the various estimates were carried out by the system generalised method of moments (GMM) method to examine the problem of endogeneity, and unobserved heterogeneity. The results indicate that migrant remittances have a direct negative link to economic growth due to it being mainly used for consumption. This increases the likelihood of dependency, which leads to the reduction of labour supply. The joint relationship between the governance composite index, and remittances, may moderate this negative effect on economic growth. However, considering the individual dimensions of governance, this shows that only the interaction between remittances and the control of corruption gives a positive and significant impact. The interaction between remittances and the five other governance quality indicators appears to be negative and insignificant. This shows that political instability, ineffective government, and poor regulatory quality encourages money transfer through informal channels that thwart economic growth in MENA countries.