Why Don't Migrant Workers Send Money to their Folks Back in Sri Lanka Anymore (original) (raw)

Migrant Remittances in South Asia (Palgrave Macmillan Book) with Introduction Chapter

Making decision in order to set off for international destinations is hardly independent of potential economic benefit that spawns in the form of remittances. The primary motivations for migration from developing countries are generally linked to economic opportunities overseas and sharing part of this newly acquired economic opportunity with family members remained behind (Skeldon, 1997; Faist, 2000; Oda, 2004; Piper 2007; de Haas, 2010b; Ullah, 2010; Sirkeci et al., 2012; Rajan, 2012; Adams et al., 2012). Remittance __ one of the direct outcomes of international migration __ is the most beneficial private transactions in the global economy. This often stems from relatively developed economies and goes to the migrant households located in the developing economies. The South Asian region draws nearly one-fourth of global remittance volume that contributes on average to over ten percent of GDP of South Asian countries. This remarkable amount and its potential for development to South Asia justify this volume. By focusing on the manners and means by which the South Asian migrant communities remit back to their countries and the implications of remittances for recipient families and communities, the chapters of this volume seek to contribute to expanding scholarship in the field of remittance. This volume advances research on migrant remittance in South Asia by shedding light on three key areas: (i) theoretical and conceptual developments, (ii) remittance transfers, and (iii) the implications of migrant remittances for development in South Asia. Some questions that this volume particularly attempts to address are as follows: What remittances exactly refer to? Is the understanding of remittances limited to the fact that transfers of money from migrants to their family members at home? What are the determinants of remittances? What are the channels used and in place to transfer remittances? Why do a considerable number of migrants resort to remit through informal channels in South Asia, despite risks involved? A central element in nearly all discussions of remittances is the question of what their impact is --socially, economically and politically. Are they simply used for consumption? Are they used for productive investment and, if so, how is productive investement perceived? What role does gender play in the remittance use? What is the role of remittances in the SME development in South Asia? How are remittances of deceased migrant recovered and made available to their family members in South Asia? How do remittances affect fertility behavior in South Asia? Who are the family members who receive them, and what are their expectations and how different are the migrants’ expectations from the users)? These questions weave through the chapters of this volume.

Are Workers’ Remittance Flows a Source of Economic Development in Sri Lanka?1

2019

Large workers’ remittances inflows have been protuberant features of the Sri Lankan economy for many decades. Combining workers’ remittances among other exogenous variables into a growth model, and engaging time series annual data over the 1977-2014 period, this paper examines the impact of workers’ remittances on economic growth in Sri Lanka. The empirical evidences based on the VEC approach shows a positive direct as well as indirect relationship between workers’ remittances and economic growth in the long-term. However, the Wald test results reveal that there is no short-run causality between workers’ remittances and economic growth, either directly or indirectly.

The impact of remittances of overseas workers on Sri Lankan economy

The purpose of this study was to discover the impact of overseas workers' remittances on Sri Lankan economy. To achieve this purpose the time series data were used during the period of 1970 to 2013. Augmented Dickey Fuller (ADF) test was employed to test the stationary of the time series variables such as the remittances of overseas workers and gross domestic product in constant price. Here, the remittance of overseas workers was explanatory variable and the gross domestic product was considered as explained variable. The simple regression model was employed in this study to test the long run relationship between the variables. Based on the regression results, the coefficient of worker's remittances was positively impact on Sri Lankan economic growth. Therefore, there was direct relationship among the variables. P – Value of the remittances of overseas workers for long run relationship was less than 5% and the value of R – squared was 65%. This was higher than Durbin Watson test statistics. The residual of this model was stationary at 5% significant level. So, the conclusion was that the remittances of overseas workers and Gross Domestic Product were cointegrated at I(0) level form. In the meantime, this study found that the remittances of overseas workers did no maintain any relationship with Gross Domestic Product in the short run period. Therefore, this study explored that the remittances of overseas workers is one of the key factor of economic growth in Sri Lanka.

Why Do they Remit? Examining Factors Influencing Migrant Remittances in India

Journal of Development Policy and Practice, 2017

Little is known about the factors that determine the remittance behaviour of migrants in India. With socioeconomic transformations, the gradual change in female migration patterns for economic reasons also signifies their contribution to household well-being. Using the National Sample Survey (2007–2008) data and applying the Heckman’s two-stage procedure, this paper examines, separately, key determinants that influence the remittance behaviour of male and female migrants. Empirical estimates reveal that among various factors, monthly per capita expenditure, distance from origin, and duration of stay at destination are important predictors of remittance behaviour. These determinants of remittance highlight that migrants retain strong economic links with origin families not only to provide economic support but also for social ties. The findings provide support of contractual motive of remitting and suggest remittances are more effective in promoting development. Further, gender differ...

The Impact of Remittance on Economic Growth in Sri Lanka

ACBE 2024 , 2024

The relationship between remittances and economic growth has captured the attention of economists and policymakers in recent years. In many developing countries, remittances serve as a significant and much-needed source of funds. In Sri Lanka, remittances play a vital role in enhancing the well-being of family members left behind and contributing to the country's economic growth. Given the substantial contribution of foreign remittances to the Sri Lankan economy, there is a growing interest in understanding their impact on economic growth. However, despite the increasing significance of remittances, their impact on economic growth has not been extensively explored, particularly in the Sri Lankan context, within the broader landscape of international financial inflows. The study explores the impact of personal remittances on the economic growth of Sri Lanka from 1980 to 2021. The Autoregressive Distributed Lag (ARDL) technique was employed to analyze both the long-term and short-term effects of personal remittances on the country's economic growth. A range of econometric techniques for time series analysis, including unit root, cointegration, and error correction mechanisms, were utilized to investigate the enduring and immediate associations between the dependent and independent variables. The study findings revealed a positive and statistically significant influence of personal remittances on long-term economic growth. However, no short-term causal relationship between the two variables was observed. Furthermore, the study identified that outward labor migration does not have a significant impact on economic growth in both the long and short run, additionally, it was confirmed that gross fixed capital formation significantly and positively contributes to economic growth in both temporal dimensions. Further, it was found that foreign direct investment has a negative but statistically insignificant impact on long-term economic growth. Moreover, the study underscored the critical role of gross fixed capital formation as a determinant of economic growth, emphasizing its significance in both the long and short run. The study's implications highlight the importance of effectively leveraging remittances to foster the economic growth of the country. The intention is to provide valuable insights to the government and policymakers, aiding them in formulating domestic policies for the management of migration from Sri Lanka and the strategic utilization of remittances for the nation's benefit.

Social, Political and Cultural Remittances: Implications for the Origin and Destination Countries

Sage, 2022

Remittances have been one of the most critical components of the population migration debate. Since migration has been studied academically, the 'remittance equals cash' idea has dominated other types of remittances. This study focuses on in-kind remittances, which are transfers of goods and services sent by migrants (other than money) from their destination country. We examined the literature using content analysis. The research investigates how a nation takes shape through the injection of remittances in kind (RK) brought by 'migrant populations' of both origins and destinations, using empirical and theoretical evidence. RK are worth considering for a variety of reasons, the most important of which is that they play an essential part in international collectivist development. Second, they highlight the societal effects of migration. Third, they have a chance of gaining public support. With great transformative power, RK has the capacity to alter a nation's economy, values and lifestyle. This article establishes for the first time, by re-conceptualizing conventional wisdom, that the major development paradigm shift that has occurred in Asia's economies over the decades has been largely due to the contribution of RK brought and sent to by individuals such as Gandhi in India, Ho Chi Minh in Vietnam, Shinawatra in Thailand, Jose Rizal in the Philippines and Suu Kyi in Myanmar. We conducted qualitative research and relied heavily on secondary data sources. This article delves into a