Evaluating the Economic Impact of International Remittances on Developing Countries Using Household Surveys: A Literature Review

Abstract

This literature review covers 50 recent empirical studies of the economic impact of international remittances on the developing world that are based on household survey data. It begins by reviewing the considerable methodological problems confronting economic work on international remittances, and then examines the strengths and weaknesses of various economic studies of the impact of remittances in the developing world on such outcomes as: poverty and inequality, health and education, investment and savings, labour supply and participation, and economic growth. It finds that while international remittances generally have a positive impact on poverty and health in the developing world, remittances can have negative effects on labour supply, education, and economic growth.