Your assignment is to prepare and submit a paper on international migrant remittances. In the year 2002, migrant remittances around the world amounted to almost 150 billion US dollars.
It was at the beginning of the 1980s that economics around the world began to give importance to the exercise of migrant remittances. The experts and scholars believe that migrant remittances have helped in compensating the loss of human capital in developing countries. There are several political debates related to the issue of remittances. Some of the hot topics of debate regarding remittances included the determinants of the remittances and the importance of the channels used to transfer the remittances as well as the economic impact on the countries which receive migrant remittances. In the past few years, the amount of remittance flows has increased enormously. This is one of the reasons why the research on remittances has become very prominent. This has led to an increase in scientific literature as well. Some of the sections where remittances have been studied in depth by researchers include the data on remittances, and the regional trends, as well as the global trends in remittances, flows, and most importantly the significance of remittances as a source of capital for economically backward countries.
Mambo and Ratha (2005, p.2) state ‘International migrant remittances are perhaps the largest source of external ﬁnance in developing countries. Ofﬁcially recorded remittance ﬂows to developing countries exceeded US$125 billion in 2004, making them the second-largest source of development ﬁnance after foreign direct investment.’ There have been several evaluations on data sources of remittances flows. According to the IMF (International Monetary Fund), there are three distinct sections in the balance of payments wherein the remittances are recorded. The first one includes the employees and the compensations of the employees who are residing abroad for less than a year. The second kind of category is the worker’s remittances.