Migration and Remittances in Latin America and the Caribbean: Engines of Growth and Macroeconomic Stabilizers?
82 Pages Posted: 9 Aug 2017
Date Written: June 2017
Outward migration has been an important phenomenon for countries in Latin American and the Caribbean (LAC), particularly those in Central America and the Caribbean. This paper examines recent trends in outward migration from and remittances to LAC, as well as their costs and benefits. For the home country, the negative impact from emigration on labor resources and productivity seems to outweigh growth gains from remittances, notably for the Caribbean. However, given emigration, remittance flows play key financing and stabilizing roles in Central America and the Caribbean. They facilitate private consumption smoothing, support financial sector stability and fiscal revenues, and help reduce poverty and inequality, without strong evidence for harmful competitiveness effects through shifts in the real exchange rate.
Keywords: Dominica, Dominican Republic, Caribbean, Costa Rica, Antigua and Barbuda, Asia and Pacific, Bahamas, The, Barbados, Belize, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Latin America, Nicaragua, Panama, Trinidad and Tobago, Western Hemisphere, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Remittances, International Migration
JEL Classification: F22, F24, O54
Suggested Citation: Suggested Citation