New Light on the Remittances‐Poverty‐Health Nexus in Macedonia

Macedonia receives about 10 per cent of GDP as cash remittances per year while a third of the population faces poverty. The study aims to investigate whether remittances improve the poverty and health of individual remittance‐receivers in Macedonia. To that end, we rely on the 2008 Remittances’ Survey and a sequential structural model linking remittances to social indicators. We find that remittances have a significant effect oto consumption, in particular health consumption, hence contribute to reducing poverty. In turn, improved health consumption significantly reduces the incidence of bad health among receivers. This finding lends support to the claim that remittances serve an informal social protection in Macedonia.     

Overseas workers' remittances in Asian development

In recent years, overseas workers from Asia have been sending remittances of about $8 billion annually to their home countries. These remittances are an important source of precious foreign exchange for the major labor-exporting countries. The overall development impact of remittances, however, has not been well established. Remittances are spent primarily on day-to-day consumption expenditures, housing, land purchase, and debt repayment. Although only a small proportion of remittances are directed into productive investments, this does not warrant the conclusion that the developmental value of remittances is negligible. In fact, remittances spent on domestic goods and services Asia provide an important stimulus to indigenous industries and to the economies of the labor supplying countries. It is these broader macroeconomic benefits of remittances which seem to have been largely ignored in the literature, and this perhaps explains the pessimistic view of the developmental value of remittances. Reservations concerning the effects of remittance on the sending countries include the fears that 1) expenditure patterns of remittance receiving households may create a demonstration effect whereby nonmigrant households may increase consumption, 2) remittance inflow will increase income and wealth inequalities, 3) remittance expenditures may result in inflation, 4) remittances may produce only short-term fluctuations in long-term economic development, and 5) remittances may adversely affect agricultural development.     

International Migrants' Remittances and Welfare Status of the Left‐Behind Families in Turkey

In this study, micro implications of remittances are examined based on the data from the 1996 Turkish International Migration Survey (TIMS‐96), part of a comprehensive study of Eurostat and the Netherlands Interdisciplinary Demographic Institute (NIDI). Results of the study imply that migrant savings are generally used for satisfying basic consumption needs. Patterns of expenditures suggest that for 12 percent of all the households receiving remittances, about 80 percent used remittances to improve their standard of living. Considering the variation by regions, it is observed that households in less‐developed regions spent more on daily expenses than those in developed regions. This suggests that daily expenses of households in less developed regions depend significantly on remittances received by households. Moreover, remittances have a positive impact on household welfare; households receiving remittances are found to be better off than nonremitting households. This suggests that migration and remittances have positive indirect effects on incomes of emigrant households. A considerable part of the relevant literature argues that remittances are mostly spent on consumption, housing and land and are not used for productive investment that would contribute to long‐run development. This conclusion often rests on arbitrary definitions of “productive investments.” Access to better nutrition and allocation of more resources to education are, without question, forms of productive investment. Although emigration does not serve as a solution to the problems of national development, it is evident that remittances generate considerable welfare effects, at least for the remittance‐receiving population.     

Remittances,Institutions and Growth in Africa

Remittances have become an important source of external finance in many developing countries. This article examines the relationship between remittances, institutions and economic growth in a panel of 26 African countries over the period 1980–2014. We apply the fixed effects (FE) and the two‐step system generalized method‐of‐moments (GMM) estimation methods. Our results show that there is a positive relationship between remittances and growth. We also find that institutions are an important determinant of economic growth. The interaction terms have a positive and statistically significant effect on economic growth. Thus, the growth effect of remittances is enhanced in the presence of strong institutions. Strong institutions are therefore germane in attracting greater remittance inflows to African countries. A clearer understanding of the channels through which remittance flows will enhance growth in African economies may assist policymakers to craft appropriate policies. In particular, a policy environment that promotes strong institutions would serve to attract more remittances.     

Remittances and the Maintenance of Dual Social Worlds: The Transnational Working Lives of Migrants in Greater London

Most research on remittances focuses on economic motivations, with little emphasis on the social contexts in which the remittance economy operates. Through an analysis of in‐depth interviews with migrant workers in a London hotel and hospital, we examine how migrants’ familial and social relationships in both sending and receiving countries inform the decision to send remittances. We suggest that remittances are a mechanism through which migrants are able to fulfil multiple obligations to families and places of origin, while also enhancing their own economic status and future. First, satisfying the cultural expectation of sending remittances helps migrants maintain their social worlds at “home”. Second, we observed that both positive and negative changes in power and resources influence the decision to send remittances by motivating migrants to invest in their social position in either their home or receiving country. In sum, we argue that the migrants’ social experience in the United Kingdom might be just as predictive of remittance behaviour as their economic and social status in the country of origin. We, therefore, call for a need to move beyond the often one‐sided concern with development by concentrating on the overlapping social worlds of migrants.     

The Use of Remittance Income in Mexico

Immigration affects sending countries through the receipt of remittance income. The impact of these cash transfers on households and communities has brought attention to remittances as a development mechanism. This study attempts to understand the degree to which household consumption is affected by the receipt of remittance income and the ways in which the broader communities may be impacted. Using household income and expenditure data for Mexico, expenditure patterns of remittance‐receiving households are analyzed. Regression analysis indicates that remittance‐receiving households spend a greater share of total income on durable goods, healthcare, and housing.     

Remittances and Calorie Consumption Nexus in Algeria

This study investigates the cointegration and causal relationships between remittances and calorie consumption as an indicator of food security in Algeria. We estimate the calorie demand function for the period 1970‐2008, using two different cointegration tests Johansen and Juselius ( 1990 ) and autoregressive distributed lag (ARDL) bounds testing approach proposed by Pesaran et al. ( 2001 ) and Granger causality test based on Vector Error Correction Model. We find that: (1) GDP per capita affects calorie consumption positively and significantly; (2) income elasticity of calorie consumption is 0.16 in the short run and 0.60 in the long run; (3) remittances positively and significantly influence calorie consumption in the long run; (4) remittance elasticity of calorie consumption is 0.05 in the long run; (5) based on the causality test remittances influence calorie consumption directly and indirectly via GDP per capita in the long run.     

Does Poverty Among Immigrants Adapt to Country of Residence? Turks in Germany and Denmark

We use data on Turkish immigrants in two European welfare states, Denmark and Germany, and data on Turks at home. Unlike in most studies of immigrant poverty, we thus control for the differences in immigrant composition. Denmark and Germany have different welfare state types, labour market structure and institutions. We find that in both countries Turkish immigrants have much higher poverty rates than natives. We perform Fairlie decompositions to find that in Denmark, compared to Germany, a larger part of the native‐immigrant poverty difference is explained by market valuation of characteristics and by unobservables. Finally, we decompose poverty by subgroups and find that certain immigrant subgroups (such as families with children and the elderly) are especially vulnerable in both countries and that not much has changed in the two countries between 2008 and 2013 in terms of the vulnerability of these sub‐groups to poverty risk.     

Where do Remittances Go in Household Consumption? Empirical Evidence from Sri Lanka-Wide Micro-data

Private internal and international remittances are a major source of household money in Sri Lanka, yet their impact on household welfare has long been a research gap. Based on the Migration and Development Theory, this article examines how private remittances affect household expenditure behaviour, using nationally representative microdata and applying quasi-experimental methods. Private remittances have significantly increased household per-capita expenditure and initiated positive behavioural changes via increased allocations for basic needs, human and physical capital investment. Compared with internal remittances, the impact of international remittance shows a strong potential for reducing poverty incidence and improving people's well-being: households in richer/richest expenditure quartiles and urban households invest in education, which supports the country's long-standing record of education. Rural households demonstrate favourable changes in spending behaviour with receiving private remittances. From a public policy standpoint, government favours migration so that remittances are more likely to flow. A proper remittance-transfer mechanism to encourage smooth remittance is thus required.     

Remittances as a Shield to Vulnerable Households in Macedonia: The Case When the Instrument is Not Strictly Exogenous

The objective of this article is to investigate whether remittances sent to Macedonia have a role to play for shielding vulnerable households, by highlighting the importance of a strictly exogenous instrument in an IV context. Results suggest that remittance‐receiving households have, on average, a 20.1 per cent lower vulnerability than non‐receiving ones. However, if one has a reasonable belief that vulnerability and the instrument are determined simultaneously, or are directly correlated due to the existence of a third unobservable factor, then the shielding effect of remittances for vulnerable households remains up to the ninth percentage of direct influence and with a reducing magnitude, and then disappears.     

The resilience of migrant money: how gender,generation and class shape family remittances in Peruvian migration

Scholars and policy makers have argued that because altruism drives remittance sending, migrant money is more resilient to uncertainty than other capital flows. In this article, I question this assumption through ethnographic examination of remittance sending by Peruvian migrant families. When in their lives do Peruvian migrants start to remit? Who are the recipients? What is the purpose of their remittances? How long do they last and why do they stop? I argue that, to answer these questions, we need to investigate how migrants make remittance commitments to different household members, how these attribute value to the remittances and how this value becomes the object of negotiation and contestation. The findings indicate that remittances reinforce existing relations of gender, generation and class in Peruvian society and suggest that while short‐lived remittances are based on contractual commitments and driven by altruism, long‐term remittances are based on emotional commitments and driven by both non‐utilitarian and utilitarian motives.     

Migration, remittances and rural development: findings of a case study in the Indian Punjab

Rural household survey data in the Ludhiana district of the Indian Punjab was used to study the nature and role of remittances in rural development. Of the 1646 outmigrants from the area since 1961, the 949 women who migrated for marriage and children under 12 years old were excluded from the study. Nearly all husbands who outmigrated had sent remittances. Parents and grandparents were 2nd and 3rd most likely to remit, but their numbers were small. Education did not correlate with remittance. Distance and time since emigration did not affect remittance. The frequency and the size of remittances are discussed. Remittances to outmigrants were insignificant. The remittances from outmigrants seem to raise the incomes and the levels of living of rural households. The remittances serve the purpose of redistributing income from urban to rural areas. Remittances also widened the gap between rich and poor in the rural areas because the better-off groups were more likely to receive remittances than the poorer groups. Most of the money sent from outmigrants was spent on consumable goods, food and clothing. Only a small proportion was spent on productive investment. This was usually done by farming families who invested in land or farm necessities. It is concluded that remittances from outmigrants can have a positive effect on the rural economies. Investment opportunities for nonagricultural families must be provided.     

The new economics of labour migration and the role of remittances in the migration process

This analysis considers international migration remittances and their impact on development in migrant-sending areas. The new economics of labor migration (NELM) posit that remittances lessen production and market constraints faced by households in poor developing countries. The article states that remittances may be a positive factor in economic development, which should be nurtured by economic policies. The impact of remittances and migration on development varies across locales and is influenced by migrants' remittance behavior and by economic contexts. Criteria for measuring development gains may include assessments of income growth, inequity, and poverty alleviation. It is hard to gauge the level of remittances, especially when remittances may not flow through formal banking systems. The International Monetary Fund distinguishes between worker remittances sent home for over 1 year; employee compensation including the value of in-kind benefits for under 1 year; and the net worth of migrants who move between countries. This sum amounted to under $2 billion in 1970 and $70 billion in 1995. The cumulative sum of remittances, employee compensation, and transfers was almost $1 trillion, of which almost 66% was worker remittances, 25% was employee compensation, and almost 10% was transfers during 1980-95. Total world remittances surpass overseas development assistance. Remittances are unequally distributed across and between countries. Migration research does not adequately reveal the range and complexity of impacts. Push factors can limit options for use of remittances to stimulate development.     

Determinants of remittances in Egypt: Do macroeconomic instability and oil price matter?

Emigration and resulting voluminous remittance inflows have been noticeable features of the Egyptian economy since the 1960s. The main purpose of this study is to investigate the determinants of remittances – primarily the role of both macroeconomic instability and oil price – in Egypt. Using autoregressive distributed lag (ARDL) bounds testing procedure, we estimated a remittance determination equation over the period from 1980 to 2015 and found that: (1) macroeconomic instability in Egypt and increases in international oil prices promote remittances; (2) GDP growth rate in the host countries and depreciation of domestic currency spur remittances; (3) financial development is inversely related to remittances, implying that remittances and financial development are substitutes; (4) GDP growth in the home country is not significantly associated with remittances.     

Remittances for Financial Access: Lessons from Latin American Microfinance

The potential of migrant remittances to foster access to financial services for low‐income households has been largely unexplored. Comparing three Latin American countries – the Dominican Republic, El Salvador and Mexico – this inter‐disciplinary study links research on remittances and microfinance with multi‐actor governance approaches. While the context of high remittance‐dependence provides similar challenges in all cases, it finds remarkable variety both in the structure of the remittances market and the actors involved in microfinance and in the role governments play. It explains the diverging success of MFIs in remittance markets by pointing to the interplay of for‐profit, non‐profit and state actors embedded within the specific market structures of each country.     

Remittances and Energy Consumption: Evidence from Morocco

The main purpose of this study is to empirically investigate the co‐integration and causal relationship between international remittances and energy consumption in the context of Morocco. Previous empirical studies associated remittances with various macroeconomic and social variables. To our knowledge, this is the first study that examines the causality between remittances and energy consumption in Morocco. The study finds a long‐run equilibrium relationship between remittances and energy consumption. The results indicate that remittances influence energy consumption directly both in the short run and long run, and influence energy consumption indirectly through industrialization and economic growth in the long run.     

Residential Remittances and Food Security in the Upper West Region of Ghana

In recent years, out migration from the Upper West Region to the southern belt of Ghana for farming has become commonplace. The natural question that has arisen is: what is the potential impact of remittances from this migration pattern on food security in the region? Using multivariate ordered logistic regression this study assesses the linkage between remittances and household food security (derived using the HFIAS) among urban and rural households (n=1,438) in the region. The findings show that urban remittance‐receiving households and rural remittance and non‐remittance receiving households were more likely (OR=2.44, p<0.05; OR=2.46, p<0.001; and OR=1.49, p<0.1, respectively) to report being more severely food‐insecure than urban non‐remittance receiving households. The findings demonstrate that household strategies such as migration and remittances on their own are not sufficient to ameliorate the precarious food insecurity situation of the region. The study calls for development of alternative livelihoods in the region.     

Transnational Turkish–German community in limbo. Consequences of political tensions between migrant receiving and sending countries

A profound political tension between Turkey and Germany has gained an overall dimension on the political agenda of the intra-European migration discussion since 2016. As close trade partners, Turkey and Germany became gradually political adversaries on different issues. 2016 and the following years marked a turnover in the already worsened mutual relations. A series of political issues such as recognising the Armenian genocide in 1915, open allegations and critical views against the Turkish President and prohibition of election campaigns for Turkish government politicians in Germany had driven political relations between the two countries to nadir. This obscure situation led the Turks of Germany (The phrases “Turks of Germany” or “Turkish migrants” are persons with migration background from Turkey who still bear Turkish citizenship or formerly were Turkish citizens. This group's ethnic or confessional identity is not recognised; their legal status and country of origin are preponderant.), who have close ties to their ancestors’ homeland and consider Germany as the centre of their lives, nolens volens into a limbo situation. Within the “guest-worker program” framework in the second part of the 20th century, highly industrialised countries of Western Europe recruited migrant workers from different countries. This workforce should perform mostly blue-collar labour in the receiving countries. After six decades of Turkish presence in Germany, the grandsons and granddaughters of the former guest workers are well-represented in almost every sector of the society. However, their loyalty and integrability to the receiving country are challenged by German politics, especially by the governments of conservative chancellor Angela Merkel (2005–2021). If Turks of Germany feel closely connected to Turkey and Turkish culture (Workers from Turkey brought with them to the country of immigration their own “cultural assets”. Those are, language, religious and customary beliefs, social habits, dress, music, literature, social codes and manners, shared history, food, etc. However, migrants in the receiving country undergo a process of hybridity under the influence of the new cultural environment. (Please see: Bhabha [The location of culture, New York, NY: Routledge, 1994]) Culture within the framework of post-colonialism has also been discussed in Edward W. Said's book “Culture and Imperialism” (Said [Kültür ve Emperyalizm. Kapsamlı Bir Düşünsel ve Siyasal Sorgulama Çalışması. Hil Yayın: İstanbul, 1998]). If Turks of Germany feel closely connected to Turkey and Turkish culture, they are not recognised as integrable members of the society. Identity-based and culture-oriented policies inexorably influence the willingness of migrants to feel like equal members in the host society, and it applies even to the new generations with migration backgrounds. The question of migrant integration is the most emotionally debated issue in Germany and seems to be the greatest challenge in the political agenda. Beyond the bilateral Turkish–German issues, the growing xenophobic sentiments, islamophobia and Europe-wide political populism may cause a persistent bilateral tension in the medium term between the countries and among the transnational and native communities. Anti-Turkish rhetoric in the media alienates the Turkish community and has a value to jeopardise integration efforts more and more.     

Workers’ Remittances to India: An Examination of Transfer Cost and Efficiency

Regarding the time efficiency of remittance transfer channels to India, the evidence suggests that traditional banking instruments are relatively inefficient as compared to the new information technology‐enabled products. Transfer arrangement of the Indian banks with overseas exchange houses has reduced the settlement cycle and the cost. Both the banks and money transfer operators (MTOs) are able to keep the transaction cycle low through the use of information technology‐enabled formats. Given that the average cost curve of the banks is located to the right of the average cost curve of the MTOs, greater potential exists for the improvement in overall efficiency of the two entities, particularly through the sharing of messaging and the access and disbursement networks to reduce the overhead cost. The estimates of error correction model reveal that the transaction fee and payment infrastructure are significant determinants of remittance flows, underscoring the scope of policy measures in influencing remittance inflows. The estimates indicate that over the medium to long‐term horizon, transaction cost emerges as the most dominant variable explaining the variation in remittances. The payments infrastructure also explains about 10 per cent variation in remittances over the medium‐term. The impulse response analysis further reveals that the favourable shocks to transaction fees and the payments infrastructure cause steady improvement in remittance inflows over the medium‐term horizon, thus underlining the importance of cost and efficiency in affecting the workers’ remittances.