IMF Working Papers

Migration and Remittances in Latin America and the Caribbean: Engines of Growth and Macroeconomic Stabilizers?

By Kimberly Beaton, Svetlana Cerovic, Misael Galdamez, Metodij Hadzi-Vaskov, Franz Loyola, Zsoka Koczan, Bogdan Lissovolik, Jan Kees Martijn, Yulia Ustyugova, Joyce Wong

June 29, 2017

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Kimberly Beaton, Svetlana Cerovic, Misael Galdamez, Metodij Hadzi-Vaskov, Franz Loyola, Zsoka Koczan, Bogdan Lissovolik, Jan Kees Martijn, Yulia Ustyugova, and Joyce Wong. Migration and Remittances in Latin America and the Caribbean: Engines of Growth and Macroeconomic Stabilizers?, (USA: International Monetary Fund, 2017) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Outward migration has been an important phenomenon for countries in Latin American and the Caribbean (LAC), particularly those in Central America and the Caribbean. This paper examines recent trends in outward migration from and remittances to LAC, as well as their costs and benefits. For the home country, the negative impact from emigration on labor resources and productivity seems to outweigh growth gains from remittances, notably for the Caribbean. However, given emigration, remittance flows play key financing and stabilizing roles in Central America and the Caribbean. They facilitate private consumption smoothing, support financial sector stability and fiscal revenues, and help reduce poverty and inequality, without strong evidence for harmful competitiveness effects through shifts in the real exchange rate.

Subject: Balance of payments, Consumption, Income, Migration, National accounts, Population and demographics, Remittances

Keywords: Caribbean, Central America, Consumption, Cost of remittance, Economic migration, GDP ratio, Gini coefficient, Global, Income, International Migration, Latin America, Migration, Remittance corridor, Remittance flow, Remittance inflow, Remittance sender, Remittance transaction, Remittances, Remittances emigrant, Remittances-recipient country, South America, WP

Publication Details

  • Pages:

    81

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/144

  • Stock No:

    WPIEA2017144

  • ISBN:

    9781484303641

  • ISSN:

    1018-5941

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