Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: THE IMPACT OF REMITTANCES ON HUMAN DEVELOPMENT: A QUANTITATIVE ANALYSIS AND POLICY IMPLICATIONS
Issue: Vol. 5, No 1, 2012
Published date: 20-05-2012 (print) / 20-05-2012 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Aysen Ustubici
Darja Irdam
Keywords: migration studies, human development, effects of remittances, quantitative analysis
DOI: 10.14254/2071-789X.2012/5-1/6
Index PUBMS: 20a4d086-aa13-11e7-8eae-080027f4daa0
Language: English
Pages: 74-95 (22)
JEL classification: F22, F24, O15
Website: https://www.economics-sociology.eu/?178,en_the-impact-of-remittances-on-human-development-a-quantitative-analysis-and-policy-implications
Abstract

This paper contributes to the discussions on the nexus between migration and development by assessing the effects of remittances on human development. We do so first through a quantitative approach, and second, by elaborating the findings of our quantitative analysis within a broader theoretical and policy framework. By using OLS, we measure the impact of remittances on human development and compare it with the effect of foreign direct investment (FDI) and official development assistance (ODA). The findings indicate that remittances have a positive correlation with the human development level and are indeed an effective way to enhance human development in countries with medium income, especially in the medium run. We demonstrate that remittances show divergent developmental effects in countries with different government approaches to migration. In the second part of the paper, we discuss different hypotheses about the causes of the problems that our findings reveal and compare different actual policy solutions found in the developing world. We argue that remittances have the most positive effect in terms of boosting human development in the countries where the state perceives migration as an effective labour export strategy.