The Impact of Remittances on Economic Insecurity

Krishnan Sharma

Journal of Human Development and Capabilities, 2010, vol. 11, issue 4, 555-577

Abstract: There is scattered evidence suggesting a positive impact of international remittances on economic insecurity, at both a macroeconomic and household levels. However, there has not to date been a comprehensive and systematic analysis of this issue that takes into account the various complexities and nuances. This paper illustrates that cross-country generalizations about the impact of remittances on economic security are useful only up to a certain point; beyond that their effect can be influenced by the interplay of various factors relating to the motivations and characteristics of migrants, economic/social/political conditions in the country of origin, immigration policies and conditions in the host country, and the size and concentrations of the remittances. The policy implications outlined in the paper include the need for caution and retrospection in certain instances as well as action and international collaboration in other areas.

Keywords: Remittances; Macroeconomic insecurity; Consumption; Poverty; Income distribution; Savings; Investment; Incentives (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1080/19452829.2010.520923

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