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Remittances

Assessing the Causes of Remittance Flows to Guyana: A Macroeconomic Approach

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Relative to GDP, Guyana is one of the largest recipients of remittance flows
in the world, receiving on average 17 percent of its GDP. In past decades,
these transfers have increased considerably compared with other inflows,
including foreign direct investment and international aid. Yet little is
known about what macroeconomic factors explain their movement, or how
they impact Guyana’s economy. This article investigates the macroeconomic
determinants of remittance flows to Guyana. We estimate a

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Do Remittances Promote Human Development?

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We study the effect of workers’ remittances on human development in developing countries and examine if the relationship differs across income groups. Using a dynamic panel estimator and a sample of 117 developing countries over the period 1980–2015, we find that remittances are effective in promoting human development and that the relationship may be dependent on the income level of the country. In particular, we find that remittances have a greater impact in relatively less-developed countries.
 

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