{
  "title": "Are Immigrant Remittance Flows a Source of Capital for Development?",
  "publication": "IMF Working Papers, September 1, 2003",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/are-immigrant-remittance-flows-a-source-of-capital-for-development-16801",
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  "summary": "The role of remittances in development and economic growth is not well understood. This is partly because the literatures on the causes and effects of remittances remain separate. We develop a framework that links the motivation for remittances with their effect on economic activity.",
  "sections": [
    {
      "heading": "Summary and research question",
      "content": "- The role of remittances in development and economic growth is not well understood.\n- The paper develops a framework that links the motivation for remittances with their effect on economic activity.\n- Because remittances take place under asymmetric information and economic uncertainty, the authors identify a significant moral hazard problem.\n- The implication from the framework is that remittances have a negative effect on economic growth."
    },
    {
      "heading": "Methods",
      "content": "- The authors develop a theoretical framework linking remittance motivation to economic outcomes.\n- Empirical testing uses panel methods on a large sample of countries."
    },
    {
      "heading": "Key findings and results",
      "content": "- The empirical results indicate that remittances do have a negative effect on economic growth.\n- The negative effect is interpreted as indicating that the moral hazard problem in remittances is severe."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subjects: Balance of payments; Financial sector policy and analysis; Income; Migration; Moral hazard; National accounts; Outward remittances; Population and demographics; Remittances.\n- Keywords: altruism; asymmetric information; economic growth; effects of remittance; Income; interest rate; Middle East; Migration; moral hazard; Outward remittances; private income transfers; remittance arrangement; remittance choice; remittance decision; remittance determination; remittance inflow; remittance literature; remittance transfer; remittance-determination equation; remittances; worker remittance; WP.\n\n---\n\n Content in this bundle\n\n- Are Immigrant Remittance Flows a Source of Capital for Development? - WP/03/189\n  - Are Immigrant Remittance Flows a Source of Capital for Development? - WP/03/189 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Are Immigrant Remittance Flows a Source of Capital for Development? - WP/03/189 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/are-immigrant-remittance-flows-a-source-of-capital-for-development-16801"
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    "Authors: Samir Jahjah, Ralph Chami, Connel Fullenkamp",
    "Published: September 1, 2003",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451859638.001",
    "The role of remittances in development and economic growth is not well understood.",
    "The paper develops a framework that links the motivation for remittances with their effect on economic activity.",
    "Because remittances take place under asymmetric information and economic uncertainty, the authors identify a significant moral hazard problem.",
    "The implication from the framework is that remittances have a negative effect on economic growth.",
    "The authors develop a theoretical framework linking remittance motivation to economic outcomes.",
    "Empirical testing uses panel methods on a large sample of countries.",
    "The empirical results indicate that remittances do have a negative effect on economic growth.",
    "The negative effect is interpreted as indicating that the moral hazard problem in remittances is severe.",
    "Subjects: Balance of payments; Financial sector policy and analysis; Income; Migration; Moral hazard; National accounts; Outward remittances; Population and demographics; Remittances.",
    "Keywords: altruism; asymmetric information; economic growth; effects of remittance; Income; interest rate; Middle East; Migration; moral hazard; Outward remittances; private income transfers; remittance arrangement; remittance choice; remittance decision; remittance determination; remittance inflow; remittance literature; remittance transfer; remittance-determination equation; remittances; worker remittance; WP.",
    "**Are Immigrant Remittance Flows a Source of Capital for Development? - WP/03/189**"
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