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Remittance
A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland.
Money sent home by migrants competes with international aid as one of the largest financial inflows to developing countries. Remittance is more than three times as large as the total global foreign aid. (In 2021, $780 billion was sent to 800 million people, while foreign aid totalled $200 billion).[1] Most remittance flows from high-income countries to lower-income countries.[1] Workers' remittances are a significant part of international capital flows, especially with regard to labor-exporting countries.[2][3]
A substantial share of remittance ends up in the hands of banks and money-transfer companies due to fees imposed on money transfers.[1]
Scholars have linked remittance flows to improved health and education incomes in low-income countries, as the money provides access to food, medicine, health treatments, and education.[1]
- ^ a b c d Teutem, Simon van; Acisu, Tuna (2025-01-13). "The great global redistributor we never hear about: money sent or brought back by migrants". Our World in Data.
- ^ Al-Assaf, Ghazi and Al-Malki, Abdullah M., (2014), Modelling the Macroeconomic Determinants of Workers' Remittances: The Case of Jordan, International Journal of Economics and Financial Issues, Vol. 4, issue 3, p. 514-526.
- ^ "Balance of Payments and International Investment Position Manual (BPM6)" (PDF). International Monetary Fund. p. 272. Retrieved 2021-04-10.
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