In an NELM model, market imperfections result in household-specific "shadow prices" that transmit remittance impacts to the production side of the household-farm economy.
In his study of how remittances impact autocrats' public spending choices, Ahmed (2012) contends that autocrats in countries that receive remittances spend less on welfare (as families privately spend more on it) and more on patronage.
As for remittances, their impact is positive, though it needs to be qualified: they enable households to solve temporary food security situations, but they have no effect on structural food security issues.
The World Bank, Department for international Development (DFID, UK) and the International Migration Policy Programme IMPP) hosted a two-day conference in London on 9 10 October 2003: 'The International Conference on Migrant Remittances: Development Impact, Opportunities for the Financial Sector and Future Prospects', bringing together over 100 participants from 42 countries.
Remittance has significant impact at the household level.
In a thought experiment whereby a number of households are randomly drawn from the population, and subsequently "treated" with remittance receipt, the impact of remittances on household expenditure patterns could be examined.
In this paper, we focus on one particular lateral consequence of stepped up immigration enforcement –namely, how it may impact remittance flows.
Additionally, controlling for community of origin-specific time trends and for the communities' population at the time of their last migration addresses time-varying characteristics that change with the community size and that clearly impact remittance transfers, such as the availability of financial and money transfer services, educational and employment opportunities.
This, too, may be misrepresenting the true impact of remittances, as remittance size can vary widely across households.
Uses of remittances and their impact on development have been a focal point of ongoing debate concerning costs and benefits of international migration.
However, in India and China, in the rest of east Asia and in the more stable parts of Africa, economic growth and foreign remittances dwarf the impact of aid in alleviating poverty.
