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                                                                                                                                                                                                                                             DEVELOPMENT STUDIES

                                                                            Copyright © 2007 International Development Options

                                                                                               All Rights Reserved

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Volume Four                                                                   Winter 2006-Spring 2007                                                             Numbers 3-4.

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    Theme: Global Labor Migration and Emerging Trends in Development Finance: An Assessment of the

    Economic and Social Impact of Migrant (Worker) Remittances in Central America and the Caribbean

     BETWEEN HARDSHIP AND THE LOCAL ECONOMY IN LATIN AMERICA

 

      Manuel Orozco

     Inter-American Dialogue

     1211 Connecticut Avenue, NW

     Washington, D.C. 20036

     Published Online: February 10, 2017

 

 

     ABSTRACT

 

This study assesses the capacity and willingness of Latin American economies to effectively absorb remittances into their productive base. Although remittances overall have a positive impact on households and local economies, their effect on long term growth and sustainable development depends on the reaction of these economies to foreign savings. The absorption of remittances into productive activities depends on the structure of the economy in question, how the supply side responds to the demand of services, and the existence of an enabling environment that can stimulate economic activities associated with remittance flows. In particular, the effect of the local economy should be strongest in five key areas: finance, education, health, housing, and insurance.

 

 

IDO        ISSN: 1093-8281                 Copyright © 2017 International Development Options

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