Publication

This working paper offers an overview of the remittance phenomenon, mainly from a Latin American and Spanish perspective, and with a primarily economic focus. The author argues that remittances can play an important but limited role in the economic development of receiving countries. To a certain extent, this role can be enhanced by government institutions. However, the extent of the remittances’ impact on development depends on the rest of the conditions for development and growth being present. The author concludes that remittances are a useful tool whose impact is optimum when the setting is right, but they are not a panacea.