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Dilip Ratha is the lead economist for migration and remittances at the World Bank.
However, there are limits to how far governments and development practitioners should view youth labour migration – and remittances – as an alternative to medium, or long-term, sustainable development.
THE people working on migration and remittances at the World Bank have put out some interesting new data on the latest trends in remittances to developing countries.
"It's something that's been going on since time immemorial," said Michael Clemens, a US economist who studies migration and remittances at the Centre for Global Development, a thinktank based in Washington.
The Migration and Remittances Factbook 2008 indicates that Kenya, for example, receives more cash in remittances ($1.3 billion or £748m in 2007) than it does net foreign direct investment (about $50.4m per year) or overseas development aid (roughly $200m a year).
Dilip Ratha, of the migration and remittances unit at the World Bank, said that billions more in remittances were not being recorded as many people were continuing to bypass the banks and big money transfer companies that are relied on for data.
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In fact, if schooling, migration, and remittance decisions are correlated, then we would run into a simultaneous causality problem.
The Tinbergen model was earlier used for trade only, but now, it is commonly applied on FDI inflow, migration and remittance flows, and other socioeconomic fields.
The current paper contributes to the literature by employing a relatively recent dataset that was specifically designed to capture migration and remittance flows.
The instrument chosen to predict the incidence and size of remittances received by the household is the existence of migration networks, which is an instrument commonly employed in the migration and remittance literature (Alcala et al. 2014, Acosta et al. 2008, Acosta 2011, Calero et al. 2009).
As part of the Africa Migration Project (Plaza et al. 2011) over 70 migration and remittance household surveys were conducted from 1990 through 2006 in Burkina Faso, Kenya, Nigeria, Senegal, South Africa, and Uganda, including data on the motives of migrants.
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