Introduction
The social impact of remittances is a very important area of research and discussion within academia and in the wider world. What is the effect of remittances on the senders, the receivers and the wider communities in which both sides live?
This essay will attempt to address the issue of the social dimension of remittances by analysing the debate on this issues through a number of examples of both the sender experience and the receiver experience. In this way we are able to get a better picture of the power of remittances from a social context and what it means to both sides.
Remittances
Migrants remitted $338 billion globally in 2009 (Levitt and Lamba-Nieves, 2). In the past 30 years studies into remittances have increased greatly. This has enabled us to learn a great deal about who, why and how people send remittances. There are numerous questions that must be addressed to further our understanding of this important area including:
- What motivates the sender to remit money?
- What are the expectations of the receivers?
- What are the obligations of sending and receiving remittances
- What is the impact of the remittances sent?
This essay will address these themes using examples in studies and research carried over the past few years. However I will also use my own experience as a remitter to show how this process effects myself and those I remit to in Yemen.
The motivations for remitting money back to the country of origin are many depending on the person remitting. One of the main reasons to send remittances is to support family back in the home country who may be unable to earn a living. What is clear is that for the majority of migrants this is the reason they left their home countries in the firs...
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The other side of factors that determine the motives to remit is the macroeconomic determinants of remittance. Most empirical macroeconomic papers focus on the number of migrant workers, wage rates, the economic situation in the host and home country, inflation, consumption, exchange rate movements, the relative interest rate between the sending and receiving country, and government policies and political stability in the receiving country as determinants of remittance flows (El-Sakka and McNabb 1999, Buch & Kuckulenz 2004, Mouhoud et al. 2008, Tansel and Yasar 2010). ……….