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And some remittances are spent on developmentally useful things like education and health.
Add a dose of microfinance, some remittances from the growing African diaspora and some borrowing on the international bond market - and hey presto!
Evidence in respect of farm households that received some remittances, however, showed that such receipt did not significantly raise the affected farm households' gross income above what was obtained by other comparable households without such remittances.
For example, remittances may decrease poverty (if some remittances flow to poor households) while increasing inequality (if most remittances flow to rich households).
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Technology, notably mobile phones and online banking, and competition between remittance agencies, make exchanging money between individuals ever easier, safer and cheaper.Even if some remittance money is "wasted" (in development terms) on consumer goods, the flow of cash boosts demand in recipient economies and supplies precious hard currency.
In May, Barclays announced its decision to close the accounts of about 250 money-service businesses on the grounds that some of them, including some remittance companies, did not have the necessary systems in place to spot criminal activity with the degree of confidence required by Barclays' regulatory environment.
In the sample, among 5,988 households, 3,178 (roughly 53%) received some remittance income.
In some countries, remittances are a significant share of G.D.P.: In Tajikistan, for example, they account for 35 percent of the whole economy.
In some countries remittances are responsible for as much as 30percentt of GDP.
First, according to some research, remittances may be associated with a reduction in the labor supply as individuals who receive remittances have higher reservation wages and go out of the labor market, increasing their preference for leisure (Fajnzylber & López, 2007; World Bank, 2006a, 2006b).
In some countries remittances are a major source of services exports and foreign exchange.
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