Introduction
Remittances are the resources sent by migrant workers to their countries, which usually involves funds. Billions of dollars are on a yearly basis transferred by migrant workers to the countries of their origin. The overall value of remittances has been estimated to be more than 200 billion dollars. Remittances from migrants in foreign countries most often than not exceed even aid in many developing nations. Such funds are usually the private savings of families and workers abroad who send the money back home for clothing, food, among other expenditures. Remittances also give developing countries the power to pay for development projects as they please.
Remittance flows around the world are annually estimated by the World Bank. This is on the basis of the national balance of payment statistics that are gathered by the central banks and IMF. Data on remittances usually cover the inflows and outflows from other nations. Remittance outflows from other countries are less concentrated on the development and migration debates. However, they can be a sign of an increase in the immigration numbers of a country when the remittance outflows exceed the remittance inflows. The obtaining of estimate data for bilateral remittances is based on the weighted income of migrants based on the per capita income of their origin country, data on weighted migrant stock, and the weighted income of the migrants’ originating country.
A large data set covering almost all countries in the world is provided via the World Bank estimates. Such allows an individual to better understanding magnitudes and trends in transfers and, at the same time, compare transfers to other flows, including Official Development Assistance (ODA). However, Alvarez et al. (2015) state that the estimates do not portray accurate values because of the various challenges encountered in the methodology (Alvarez et al., 2015, p. 43). In the category of “compensation for employees,” which the IMF has defined, balancing of payments may, in a great way, overestimate remittances. This occurs where a given country has a huge UN or embassy presence and contains factories that are trans nationally owned and have a large number of employees. Such employees are usually recognized as migrants in the country; hence their salaries are classified as remittances (Alvarez et al., 2015, p. 44). It is therefore not certain to say that the official World Bank and IMF numbers are true or whether they overestimate because of UN, embassies and the salaries of employees in foreign companies being counted as remittances.
According to statistics, migrants who live in a particular country for a minimum of 12 months aren’t separable from the other individuals who were already in the country since the statistics are normally on the basis of residence but not the status of the migration. In personal transfers, which is the second part of remittances, if a transfer is carried out across boundaries regardless of the nationality of an individual or residency status, the IMF still considers it since such information is usually unavailable (Clemens &McKenzie, 2014). The unavailability of the information is contributed by the fact that the sender or receiver of the remittance may be an individual with connections to another country or a migrant. Therefore, remittances may be added together with huge amounts of money, which might have been sent by diaspora members or private investors for property purchase, business investment, and financial transactions — doing so results to a probability in the overestimation of money transfers (Clemens &McKenzie, 2014).
It’s crucial to put into consideration that the recorded growth in remittances across the world in recent years, maybe a derivative of changes in how remittances are measured when comparing remittances estimates with time. In the period 1990-2010, around 80 percent of the rise in recorded remittances can be as a result of changes in measurement (Alvarez et al., 2015, p. 44). Only 20 percent of the changes recorded may be because of an increased number in the international migrants and the money they are probable to earn in the countries they migrate to. To add on, the reporting of remittance inflows and outflows has seen improvements, and individuals migrating have employed formal payment options (Alvarez et al., 2015, p.44). Informal payment channels have also decreased due to anti-money laundering operations.
It’s important also to note that the estimates by the World Bank and IMF are focused on remittances transacted via official channels like banks. It’s not all countries have money transfer operators like western union, post offices, mobile transfer companies where small transactions can be carried out by migrants. Also, informal transfers are not in all countries; hence may be left out by central banks (Clemens &McKenzie, 2014). Such transfers may not be included even though they may be of a significant amount. A good example is the under-reporting of South-Sudan remittances by a huge 50 percent. Some countries don’t report remittance numbers to the IMF in their balance of payments because of the huge unknown amounts in informal transfers (Clemens &McKenzie, 2014). Remittances data may also vary among countries because of differences in national legislative, availability of data, and policy frameworks.
Conclusion.
Estimations of bilateral remittance are faced with the challenge of limitations of the information on migrant stocks. The estimates are based on gross national income per capita of the nation where migrants are from and therefore do not account for the GNI being more in such countries since they assume individuals move to countries with a higher income. There are issues of failing to attribute a transaction to a particular country which the World Bank has acknowledged (Clemens &McKenzie, 2014). This happens especially when the transaction is through an international bank. Data on bilateral remittance are, therefore, just estimations that don’t show the actual correct figures. Ratha (2014) expresses the same views as Clemens & McKenzie (2014). They address the issue of there being insufficient data on migrant workers. This is in addition to the data being biased since illegal migrants may opt for unofficial channels that are not considered in the remittance estimates. However, Alvarez et al. (2015) seem to express a different view from Ratha’s in that there have been made changes in measurements with time; hence the data collected can be viable.
Questions and answers.
- Is money laundering the only reason for remittances regulation?
No. Governments of various countries may formulate regulations on remittances in a move to encourage investment in local products and services and prevent the repatriation of company profit. A good example is Brazil, where progressive rates have been imposed on all remittances, send to other countries from multinational corporations ().
- Which country has the highest amount of remittances outflow?
The United States of America has the greatest number of remittances going out of the country. It can be noted that India is the world’s largest receiver of remittance around the globe, with 80 billion dollars being transferred to the country in 2018.
- Should remittances transfer via unofficial channels be considered in the estimation of bilateral remittances?
Yes. Most of the migrants usually work in foreign countries illegally. This means in order to avoid detection while transferring remittances, they prefer the unofficial methods. This makes the data estimates for remittances by IMF and World Bank bias considering the amounts sent through unofficial channels may be huge (Alvarez et al., 2015).
- Is there an impacton the economy of developing countries receiving remittances?
Yes. Monetary policy development, as well as financial markets, can be stimulated by the provision of remittances, especially in the developing countries (Peter et al., 2012, p. 520). They improve the allocation of capital, credit capabilities for the poor in addition to taking the place of lack of financial development in the process of improving the growth of the economy.
- Do remittances have a negative effect?
Yes.The transfer of remittances may act as avenues for money laundering, which fines the criminal undergrounds. If developing countries do not diversify their source of revenue, they may rely on remittances leading to a moral hazard (Bussolo et al., 2008, p.750). The migrants sending remittances also get charged costly for the transfer of the funds.
References.
Ratha, D. (2014): The hidden force in global economics: Sending money home’, TED Talk
Alvarez, P.S. et al. (2015):‘Remittances: How reliable are the data?’ Migration policy practice V (2): 42-46
Clemens, M. A., and D. McKenzie (2014) ‘Why Don’t Remittances Appear to Affect Growth?’ CGD Working Paper 336, Centre for Global Development, Washington, D.C
Bussolo, M. and Medvedev, D. (2008) ‘Do remittances have a flip side? A general equilibrium analysis of remittances, labor supply responses, and policy options for Jamaica’, Journal of Economic Integration, 23 (3), pp. 734-764
Roy Peter, D.K. 2012, “Dynamic multiplier effects of remittances in developing countries,” Journal of Economic Studies, vol. 39, no. 5, pp. 512-536.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Literature
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Finance
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
Psychology
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
Nursing
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Sociology
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
Business
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
Statistics
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Law
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
Reasons being:
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
