Remittances are transfers of money across national boundaries by migrant workers.
Remittance flows have grown in the world economy over the longer-term as the scale of migration between countries has grown.
Migrants sent about US$450 billion to developing countries in 2017, ten times more than they did just 20 years earlier. These ‘workers’ remittances’ are more than four times the value of all foreign aid for development. Some countries are heavily reliant on remittances, for example, half of all Tongans work abroad, and many send money back home.
Western Union and MoneyGram dominate the money transfer industry and the high level of fees that these companies has been heavily criticised in recent years
Advantages of remittances
Remittances, the largest aggregate flow to fragile states and economies, benefit a small number of middle-income countries with big diaspora populations.
Limitations of remittances
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