In the Media: Don't Expect Remittances to Drive Economic Growth

10 February 2015 1:24PM

In October 2014 the World Bank predicted that remittances to developing countries would exceed $450 billion this year. While research has shown that remittances can reduce volatility and create a “fiscal cushion” in the countries that receive them, they have done little to promote economic growth.

Writing for The Conversation, Professor Connel Fullenkamp says that research has consistently failed to find a strong connection between remittances and economic growth. In fact, there have been studies that found they actually reduced economic growth in the receiving countries.

 

Why don't remittances spur growth? What roles do they play in developing countries? Read the full article on The Conversation.