Search Results (41)

Unemployment and weak economic productivity are significant global issues, particularly in West Africa. Recently, through diverse mechanisms, remittances and foreign direct investment (FDI) have been sources of foreign capital flow that have positively influenced many less developed economies, including ECOWAS (ECOWAS stands for Economic Community of West African States). Nevertheless, these financial flows have exhibited significant inconsistencies, primarily resulting from economic downturns in migrants’ destination countries, with remarkable implications for beneficiary economies. This study, therefore, examines the effect of remittances and FDI on employment in ECOWAS. Specifically, the study assesses the effects of the inflow of remittances and FDI on employment using panel dynamic ordinary least squares (PDOLS) and also investigates the shock effects of remittances and FDI by employing Panel Vector Error Correction (PVECM), which involves variance decomposition. The results show that foreign direct investment (FDI) positively and significantly affects employment. Other variables that show a significant relationship with employment are wage rate, education expenditure, and interest rate. The variance decomposition result revealed that external shocks on remittances and FDI have short- and long-term effects on employment. The above findings imply that foreign direct investment has a far-reaching positive impact on the economy-wide management of the West African sub-region and thus calls for relevant policy options. Full article

The 2021 military coup in Myanmar triggered a severe humanitarian crisis, forcing many to flee through regular and irregular channels to neighboring countries like Thailand. This study explores the resulting migration patterns and precarious situation of Myanmar nationals seeking refuge in Thailand. Drawing on contemporary sources, it highlights how the crisis, worsened by military conscription laws, displaced many citizens. Refugees face constant fear of incarceration and forced repatriation while struggling with limited access to basic services in Thailand, which worsens mental health and reduces quality of life. The military’s revenue tactics, such as taxing overseas workers and remittances, have contributed to their hardships. In response, Thailand introduced a cabinet resolution to legalize work and residence for irregular migrants for four years. However, ongoing detentions and deportations risk forced military enlistment upon return, raising doubts about the resolution’s effectiveness, accessibility, and affordability. The study concludes with policy recommendations to address the humanitarian needs of Myanmar’s displaced population both at home and abroad. It also suggests ways to implement protective measures effectively, such as the Thai Cabinet resolution, to safeguard the dignity and rights of Myanmar’s people. Full article

Brain drain represents a critical challenge to global development, reflecting structural inequalities and tensions between mobility and rootedness. This study analyzes the determinants of skilled migration in 178 countries (2006–2022) using a regression model based on panel data, identifying six key variables: uneven economic development, the quality of public services, external intervention, voice and accountability, the rule of law, and political stability. Governance, particularly political stability and the rule of law, stands out as crucial for retaining talent, while external interventions and economic inequality exacerbate emigration. From a sociological perspective, migrants are active agents who transform transnational networks, challenging traditional notions of citizenship and belonging. Civil society organizations play a central role by facilitating sociocultural inclusion, mediating resettlement processes, and promoting brain circulation as an alternative to retention-focused models. Additionally, this study highlights the cultural and symbolic dimension of migration, revealing the impact of uprooting on communities of origin. Future research should explore how inclusive policies, digital nomadism, and remittances can reduce structural inequalities, strengthen the connection between migrants and their communities, and advance towards a sustainable and equitable mobility model. Full article

This study comprehensively analyzes the relationship between migration and financial markets. We examine existing research on this subject using a scientometric and bibliometric approach. By employing VOSviewer and Bibliometrix tools, we introduce a novel methodology that enhances comprehension of this intricate relationship. The findings underscore two significant outcomes. Firstly, the impact of migration on financial markets is evident through the substantial flow of remittances and microfinance. Secondly, this study uncovers challenges hindering the integration of migrants into formal banking systems, thereby affecting financial market dynamics. This research deepens our understanding of migration’s implications on financial markets, offering practical insights that can guide policymakers and financial institutions in their decision-making processes. Full article

The United Arab Emirates (UAE) is often regarded as a preferred employment location for Indian migrant workers seeking improved financial stability and enhanced career opportunities. The spread of COVID-19 has led to a decline in international migration rates and an increase in the number of individuals returning to their home countries. Therefore, it is imperative to analyze the challenges and perspectives of migrant labour. The assessment was based on a sample size of 416 Indian migrant workers who were present in the UAE during the lockdown period of the pandemic. Statistical techniques were employed to assess the research objective and examine the formulated hypothesis. The study confirms that the employment status of the migrant population has transformed, leading to a decline in both income and remittance flows. There is a significant difference in remittances by Indian migrant workers in the United Arab Emirates before and during the COVID-19 pandemic. The statistical analysis reveals a significant finding in the chi-square test regarding the perception of migrants towards health facilities and other amenities offered by the Government of the UAE. The facilities provided by the Government of the UAE were perceived to be considerably more favourable in comparison to those offered by the Government of India. The favourable view of the UAE authorities led to the choice of several migrant workers to remain there rather than return to India throughout the pandemic. The logistic regression analysis reveals that demographic information such as age, duration of stay, level of education, sources of income, and earnings were the significant determinants of fear of COVID-19. The report also encompasses a few constraints and offers policy recommendations. Full article

Migrant remittances have become significant in poverty alleviation and microeconomic development in low-income countries. However, the ease of conducting global migrant remittance transfers has also introduced the risk of misuse by terrorist organizations to quickly move and conceal operational funds, facilitating terrorism financing. This study aims to develop an unsupervised machine learning algorithm capable of detecting suspicious financial transactions associated with terrorist financing in migrant remittances. To achieve this goal, a structural equation model (SEM) and an outlier detection algorithm were developed to analyze and identify suspicious transactions among the financial activities of migrants residing in Belgium. The results show that the SEM model classifies a significantly high number of transactions as suspicious, making it prone to detecting false positives. Finally, the study developed an ensemble outlier detection algorithm that comprises an isolation forest (IF) and a local outlier factor (LOF) to detect suspicious transactions in the same dataset. The model performed exceptionally well, being able to detect over 90% of suspicious transactions. Full article

People-centred reforestation is one of the ways to achieve natural climate solutions. Ghana has established a people-centred reforestation programme known as the Modified Taunya System (MTS) where local people are assigned degraded forest reserves to practice agroforestry. Given that the MTS is a people-centred initiative, socioeconomic factors are likely to have impact on the reforestation drive. This study aims to understand the role of translocal practices of remittances and visits by migrants on the MTS. Using multi-sited, sequential explanatory mixed methods and the lens of socioecological systems, the study shows that social capital and socioeconomic obligations of cash remittances from, as well as visits by migrants to their communities of origin play positive roles on reforestation under the MTS. Specifically, translocal households have access to, and use remittances to engage relatively better in the MTS than households that do not receive remittances. This shows that translocal practices can have a positive impact on the environment at the area of origin of migrants where there are people-centred environmental policies in place. Full article

Globally, large numbers of adults remain unbanked, and most of them live in rural areas of the Third World. The recent outbreak of the COVID-19 pandemic has shown us how inequalities in accessing financial services continue to affect us. However, digital financial inclusion has emerged as an effective tool used to tackle socioeconomic ills and drive economic development. In fact, due to these modern technological developments, the number of studies in this area is very limited, especially in the context of developing economies. This study examines the impacts of migrant remittances on digital financial inclusion within households in Bangladesh by using the Migration and Remittance Household Survey. To meet the research objectives of this study, a household survey was conducted and 2165 households interviewed in 2022–2023 in Bangladesh. The survey data collected was tested using univariate and multivariate estimations. This study finds that the coefficient of remittance has positive relationships with the probability of e-bank accounts and the use of mobile banking for a household’s financial transactions. However, the use of ATM cards by households for financial transactions has not been significantly affected. The article concludes that remittance flows may enhance access to and use of means of digital financial inclusion by reducing some of the barriers and costs in Bangladesh, which could greatly contribute to the country’s economic growth by creating and increasing a strong fund for investment. The findings of this study can help in taking various steps to facilitate the most powerful financial sector of Bangladesh, namely, remittance management. Full article

This paper investigates the macroeconomic determinants of global bilateral remittance flows. Unlike existing studies, which have been often hampered by the lack of comprehensive and large-enough datasets, we use data originally covering 214 countries over the 2010–2017 period. We employ a gravity-model approach to explore the role played by dyadic and country-specific covariates in explaining remittances. We find that remittance flows are robustly and strongly impacted by size effects (i.e., number of migrants in the host country and population at home), transaction costs, common social, political, and cultural ties, output growth rate, and financial development at home. We also document the existence of a robust non-linear relationship between per capita income at home and remittance flows, both in the aggregate and across income groups. Full article

This study examines the effect of remittances on selected recipient countries’ financial development. Using weights for bilateral remittances from 1990 to 2015, this study calculates the weighted gross national income per capita of remittance-sending countries. This study then uses the weighted gross national income as an instrument to address the endogeneity between remittance and financial development. Using the instrument variable (IV) model, this study finds that remittances from low-skilled migrant-abundant sending countries have different effects than the highly skilled labor-abundant sending countries. Assuming the Gulf Cooperation Council (GCC) countries as a source of low-skilled and the Group of Seven (G7) as the source of high-skilled labor-abundant sending countries, remittance from relatively low-skilled emigrants has a greater impact on financial inclusion in the recipient countries than their high-skilled counterparts. In contrast, remittance from high-skilled countries has a greater impact on the development of the stock market. Similar types of effects of remittance on financial development have also been observed during the COVID-19 pandemic. The results suggest that policymakers should provide better foreign employment opportunities and improved transaction and investment policies in the home financial markets. Full article

Given the indisputable roles of remittance and financial development in countries’ economic performance, enhancing the nexus between the two variables has become pertinent. The remittance–financial development literature has surged, with a growing argument that making the relationship work is conditioned on mediating roles of certain economic indicators. Despite the overwhelming evidence of the transformative roles of digital technology, the assessment of its possible mediating role in the remittance–financial development nexus is lacking in the literature. Hence, using pooled data of 35 Sub-Saharan African (SSA) countries sourced from the World Bank’s Development Indicators, this study examined the mediating effect of digital technology in the relationship between remittance inflows and financial development. Using two indicators of ICT—fixed broadband and mobile cellular subscription—the results of the generalized method of moment analysis suggest that digital technology spurs remittance inflows to promote financial development in SSA. The results are consistent for both measures. These findings imply that remittance and digital technology are complementary in promoting financial development in the sub-region. Based on these outcomes, the study therefore advances the enactment of policies aimed at fostering diffusion of digital technology and achieving the sustainable development goal’s recommendation of lower transaction cost of remittances. Full article

According to the social stress process model, global crises are macro-level stressors that generate physiological stress and psychological distress. However, existing research has not identified immigrants’ COVID-19 containment policy stressors or examined the social stress of sending remittances amid crises. Drawing on in-depth longitudinal interviews with 46 Venezuelan immigrants—half before and half during the pandemic—in Chile and Argentina, we identified the COVID-19 containment policies’ stressors. We focused on Venezuelan immigrants because they constitute one of the largest internationally displaced populations, with most migrating within South America. We found that the governmental COVID-19 containment measures in both countries generated four stressors: employment loss, income loss, devaluation of employment status, and inability to send needed remittances. Moreover, sending remittances helped some migrants cope with concerns about loved ones in Venezuela. However, sending remittances became a social stressor when immigrants struggled to simultaneously sustain their livelihoods and send financial support to relatives experiencing hardships in Venezuela. For some immigrants, these adversities generated other stressors (e.g., housing instability) and symptoms of anxiety and depression. Broadly, for immigrants, the stressors of global crises transcend international borders and generate high stress, which strains their psychological well-being. Full article

Labor migration is a complex phenomenon, yet while much attention has been paid to understanding the drivers of migration, there is a huge knowledge and policy gap regarding the effects of migration on people and communities left behind. We sought to explore the impacts of rural outmigration on migrant-sending communities in Ethiopia. This remains an understudied topic when it comes to research on migration in Ethiopia. Our investigation is based on a critical review of the migration literature pertaining to Ethiopia and, more broadly. We pursued a holistic analysis of the multidimensional aspects of migration. There are indications that rural outmigration impacts involve issues related to remittances, household food security, agricultural labor use, farmland management, and rural infrastructure development. Our analysis revealed that there had been few systematic studies and limited analyses regarding the impacts of outmigration on agriculture and the livelihoods of rural people and households left behind. Instead, Ethiopia’s migration literature largely deals with migration’s causes, including environmental factors, climate variability, agricultural pressures, livelihood stresses, and changing aspirations. Full article

The unexpected pandemic has provoked changes in all economic sectors worldwide. COVID-19 has had a direct and indirect effect on countries’ development. Thus, the pandemic limits the movements of labour forces among countries, restricting migrants’ remittances. In addition, it provokes the reorientation of consumer behaviour and changes in household expenditure. For developing countries, migrant remittances are one of the core drivers for improving household wellbeing. Therefore, the paper aims to analyse how the COVID-19 pandemic has affected household expenditure in Ukraine, as being representative of a developing country. For this purpose, the data series were compiled for 2010 to the second quarter of 2021. The data sources were as follows: Ministry of Finance of Ukraine, The World Bank, and the State Statistics Service of Ukraine. The core variables were as follows: migrants’ remittances and expenditure of households by the types. The following methods were applied to achieve the paper’s aims: the Dickey–Fuller Test Unit Root and the ARIMA model. The findings confirmed that COVID-19 has changed the structure of household expenditure in Ukraine. Considering the forecast of household expenditure until 2026, it was shown that due to changes in migrants’ remittances, household expenditure in all categories tends to increase. The forecasted findings concluded that household expenditure on transport had the most significant growth due to changing migrants’ remittances. Full article

As a growth input, human capital and remittances have received significant attention and their role on other macro fundamentals has also been investigated. However, the effects of remittances on human capital development are not yet conclusive in the literature. The motivation of the study is to gauge the role of remittances in the process of human capital development in the topb10 remittance recipients for the period spanning from 1980 to 2019. The study has implemented symmetric and asymmetric estimations to explore the effects of remittances, FDI, and gross capital formation on human capital development. The study documented a positive and statistically significant linkage between remittances and human capital development; a similar linkage was revealed for FDI and gross capital formation. Asymmetric assessment detected asymmetric effects running from remittances, FDI, and gross capital formation to human capital development, both in the long-run and the short-run. Moreover, asymmetric shocks in remittances and FDI have exposed positive and statistically significant human capital development. In contrast, gross capital formation revealed a negative and statistically significant connection with human capital development. Referring to a directional causality test, the study documented a feedback hypothesis that holds in explaining the causality between remittances, FDI, and human capital development and unidirectional causality running from gross capital formation and human capital development. In regard to policy formulation, the study suggested that offering additional incentives could induce migrants to send more remittances into the economy, eventually supporting sustainable economic growth. Second, an efficient and effective financial sector can ensure optimal utilization through the channel of capital formation in the economy; therefore, countries must pay attention to the establishment of efficient intermediation. Full article