Assessment of Distributive Effects of Emigrant Remittances in Developing Countries

Jibrin Musa Talba^1, , Ibrahim Moussa² and Jidda Mohammed Abdul-Aziz Ajayi¹

¹Department of Economics, University of Maiduguri, Maiduguri, Nigeria

²Department of Sociology and Anthropology, University of Zinder, Niger, Republic

Cite this paper:
Jibrin Musa Talba, Ibrahim Moussa and Jidda Mohammed Abdul-Aziz Ajayi. Assessment of Distributive Effects of Emigrant Remittances in Developing Countries. Journal of Finance and Economics. 2017; 5(4):185-188. doi: 10.12691/jfe-5-4-5

Abstract

Despite the rising volume of remittances flowing to developing countries, their distributional effect on the recipient countries has been largely unexplored. We examine this topic using data from World Bank. Despites the positive effects of emigrants remittances in terms of developing microfinance Institutions and welfare improvement of the recipient households, its negative effects ranges from appreciation of the national currency, hampering competitiveness, monetary management and rekindle inflationary pressures, extension of trade deficits and brain drain to mention just a few. Remittances represent a short-term fix for long-term problems. If properly channeled Remittances could be used to finance development and reduce poverty. Government of the recipients countries should promote Diaspora bonds in order to reap full benefits of emigrants remittances.

Keywords:
remittances monetary management statistical significance

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