Worker Remittances and Capital Flows to Developing Countries

28 Pages Posted: 15 May 2004 Last revised: 14 Aug 2008

See all articles by Claudia M. Buch

Claudia M. Buch

Deutsche Bundesbank

Anja Kuckulenz

Center for European Economic Research (ZEW)

Date Written: April 2004

Abstract

Worker remittances constitute an increasingly important mechanism for the transfer of resources from developed to developing countries, and remittances are the second-largest source, behind foreign direct investment, of external funding for developing countries. Yet, literature on worker remittances has so far focused mainly on the impact of remittances on income distribution within countries, on the determinants of remittances at a micro-level, or on the effects of migration and remittances for specific countries or regions. The focus of this paper is thus on four questions: First, how important are worker remittances to developing countries in quantitative terms? Second, what are the determinants driving worker remittances? Third, how volatile are worker remittances to developing countries? Fourth, are remittances correlated to other capital flows?

Keywords: Remittances, capital flows, developing countries

JEL Classification: F22, F36, J61

Suggested Citation

Buch, Claudia M. and Kuckulenz, Anja, Worker Remittances and Capital Flows to Developing Countries (April 2004). ZEW - Centre for European Economic Research Discussion Paper No. 04-031. Available at SSRN: https://ssrn.com/abstract=535802 or http://dx.doi.org/10.2139/ssrn.535802

Claudia M. Buch (Contact Author)

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Anja Kuckulenz

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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