International Remittances and Development: Existing Evidence, Policies and Recommendations

J. Ernesto Lopez-Cordova, IFC-World Bank Group
Alexandra Olmedo

Abstract

In this paper we survey the recent literature assessing the development impact of international migrant remittances. We begin by arguing that international migration should be fully incorporated in ongoing debates on the impact of globalisation. We show that despite methodological challenges, there is an emerging body of evidence suggesting that migrant remittances can have an important impact on development and household welfare. Remittances appear to help in poverty reduction, accumulation of human capital, investment and saving. Finally, we offer an account of existing policies and recommendations to facilitate remittance flows and to take advantage of their development potential.