Search results

Untapped resources are hard to come by in the realm of international development. Migrant remittances, however, represent a relatively unexploited resource bank for developing countries. Still, researchers often debate the degree to which migrant remittances actually incite community development in practice. I rekindle the this theoretical discussion by comparing the development effects of household remittances with investments made through the remittance-channeling program 3×1 para migrantes in Guanajuato, Mexico. Regression analysis demonstrates that household remittances repress development outcomes across Guanajuato's 46 municipalities, while remittances invested through the 3×1 program have a positive effect on indicators of municipal wellbeing, including healthcare, education, and income. To my knowledge, this is the first attempt to systematically compare the development effects of household remittances with the development outcomes of remittances transferred through a government-supported program like 3×1 para migrantes. This research has meaningful implications for policy makers in migrant-sending regions around the world as well as agents of international development such as the International Monetary Fund and the World Bank.

Recent years have seen a substantial increase in remittances from diaspora communities to their home countries, prompting developing economies to establish and enhance institutional mechanisms. These mechanisms aim to channel and leverage the emotional connections of emigrants to their native lands for economic purposes. This article concentrates on the influence of migrant remittances on the formulation of diaspora policies in Africa. It closely examines two clusters encompassing a total of 8 states recognized as leaders in terms of migrant remittances' share in GDP and their absolute value, respectively. The article evaluates three primary categories of tools and practices that structure diaspora cooperation: formal institutional means, economic tools, and socio-cultural practices. The research applies a neo-institutional approach, conceiving diaspora policy as a network of interconnected practices across various spheres. By comparing cases within and between these clusters, it demonstrates diverse approaches to developing diaspora cooperation mechanisms. Additionally, the authors outline the most promising pathways for advancing diaspora policies while identifying existing barriers.They advocate for the establishment of distinct platforms for diaspora representation, deepening cooperation between origin and host states, and extending certain diaspora policy mechanisms to subnational and supranational levels. However, the development of diaspora politics in the examined cases is impeded by insufficient resources, weak state institutions, and state reluctance to cede control over their population's interaction with external actors. Despite the prevalent notion that the evolution of diaspora cooperation mechanisms correlates with the volume of migrant remittances, empirical analysis within the African context exposes the explanatory limitations of such a model.

Remittances play a very important role in a political economy perspective that how do remittances impact corruption in the recipient economy? This paper explored the hypothesis that whether the remittances worked as a cure by decreasing corruption being a political resource (accountability perspective), or remittances worked as a curse by allowing the government to divert spending from public goods provision (substitution perspective). The autoregressive distributed lag (ARDL) method is used to check whether a long-run equilibrium exists among selected indicators from 1984 to 2018. The Error Correction Model was used to get the short-run regression results. Empirical analyses have shown the support for remittances being a curse, not a cure for Pakistan in the long run whereas, short-run results revealed reversed resource curse hypothesis.

Civil wars reflect, in part, internal contestation over the provision of resources. A government's ability to "buy off" rebellion by providing social welfare payments is one mechanism to help ensure social stability. In times of economic distress, however, the government becomes increasingly constrained in its ability to provide social welfare and, absent some form of financial relief, will be subject to increasing pressure from potential rebel groups. Migrant remittances can serve as a smoothing mechanism that provides for social welfare needs outside the formal mechanisms of the state, and therefore acts to reduce the incentive for rebellion. We develop a model of migrant remittances as a vehicle that provides domestic stability in times of economic constraints. We test hypotheses from this model on World Bank remittance data to 152 countries from 1980 to 2005. Our results suggest that a significant increase in migrant remittances during crises can lower the risk of civil war.