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Migrant Remittances and Beyond: The Development Implications of Human Capital Mobility and Accompanying Financial Flows

In: Development Finance

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  • Ralitza Dimova

    (University of Manchester)

Abstract

Remittance flows towards developing countries tend to dwarf the size and effect of alternative cross-border financial flows and have proven to be very resilient in the face of crises. This chapter reviews theories and evidence on the implications of international migration, prevalently skilled migration, and remittances for economic development. There appears to be an emerging consensus that the implications are heterogeneous and that context-specific validation is required for sound policy advice. Moreover, the literature continues to debate on whether the transfers received are used for investment or for consumption and whether they are therefore productive in the long run. There is no unambiguous answer as to whether either brain gain or enhanced inflow of capital and technology on account of networking and information sharing by skilled migrants can compensate for the detrimental consequences of loss of human capital in a less developed economy.

Suggested Citation

  • Ralitza Dimova, 2017. "Migrant Remittances and Beyond: The Development Implications of Human Capital Mobility and Accompanying Financial Flows," Palgrave Studies in Impact Finance, in: Gianluigi Giorgioni (ed.), Development Finance, chapter 5, pages 111-145, Palgrave Macmillan.
    • Handle: RePEc:pal:psifcp:978-1-137-58032-0_5
    DOI: 10.1057/978-1-137-58032-0_5
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