Access to remittances and the diaspora frequently provides the source of capital for entrepreneurship.
Thanks to remittances from abroad and to the Green Revolution, Bangladesh has done better than most at reducing persistent rural poverty.
The surge of capital and other inflows into India has taken a variety of forms, ranging from foreign direct investment (FDI) to remittances sent home by Indian expatriates.
Inequality remains an official taboo but a sizeable minority – thanks to remittances and shadier means – has designer clothes, iPods and cash to enjoy restaurants with tourist prices.
Second, companies like Azimo and Transferwise are bringing a new level of price transparency to remittances (sending money overseas), which has typically been associated with high fees.
The chunky surplus on invisibles owes more to remittances: non-resident Indians, attracted by the stability of the rupee and its higher interest rates, have been moving their offshore deposits back home.
Sánchez (2008) analyzes aspects related to remittances and poverty.
One important sub-group rarely examined by financial literacy studies is immigrants, who have specialized financial needs related to remittances.
As mentioned in Proposition 2, returns to remittances may either be concave, or convex.
This tremendous growth has led to remittances being an increasingly important part of the Bolivian economy.
Whether returns to remittances are convex or concave matters for the optimal migrant portfolio.
