Remittances and Development in Latin America

31 Pages Posted: 5 Jul 2006

See all articles by Pablo Acosta

Pablo Acosta

University of Illinois at Urbana-Champaign - Department of Economics

César Calderón

World Bank

Pablo Fajnzylber

World Bank - Economic Development Institute; Federal University of Minas Gerais

Humberto Lopez

World Bank - Research Department

Abstract

Flows of workers remittances have become a major source of external finance for developing countries and are particularly important in Latin America and the Caribbean, where they are estimated to have reached $40 billion in 2004. Not surprisingly, academics, policymakers and development practitioners in general have been devoting increasing attention to the potential development impact that these flows may have on receiving countries. This paper contributes to this debate along four dimensions. First, it reviews the evolution of remittances flows to Latin America, using Balance of Payments data, and compares these statistics with estimates of remittances income based on Household Surveys. Second, the paper describes the varying profile of remittances recipients in ten Latin American countries. Third, the paper reviews the few macro- and microeconomic studies that have estimated the impact of remittances on poverty and inequality. Finally, the paper expands some of the existing works to investigate the extent to which that impact is different in Latin America and varies across countries in the region.

Suggested Citation

Acosta, Pablo and Calderon, Cesar A. and Fajnzylber, Pablo R. and Lopez, Humberto, Remittances and Development in Latin America. The World Economy, Vol. 29, No. 7, pp. 957-987, July 2006. Available at SSRN: https://ssrn.com/abstract=914268 or http://dx.doi.org/10.1111/j.1467-9701.2006.00831.x

Pablo Acosta (Contact Author)

University of Illinois at Urbana-Champaign - Department of Economics ( email )

410 David Kinley Hall
1407 W. Gregory
Urbana, IL 61801
United States

Cesar A. Calderon

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States
202-458-7214 (Phone)
202-522-7528 (Fax)

HOME PAGE: http://www.worldbank.org/laceconomist

Pablo R. Fajnzylber

World Bank - Economic Development Institute ( email )

1818 H Street
Washington, DC 20433
United States

Federal University of Minas Gerais ( email )

Rua Curitiba, 832
CEDEPLAR 9 Andar
MG30170-120 Belo Horizonte
Brazil
+55 31 32799162 (Phone)

Humberto Lopez

World Bank - Research Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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