Significant amounts of remittances were sent from 37 U. The high growth rate of remittances to Mexico not the total amount is unlikely to continue. In fact, according to the Mexican central bank, remittances grew just 0.
Background of the Study International migration has become a strategy for individuals and families in developing countries such as Kenya to cope with poverty and economic crisis. Migrants attempt not only to improve their own livelihoods but they send a considerable share of their earnings to their families in the region of origin as remittances.
The importance of international migration is evidenced by the numerous money transfer institutions and the rapid increase in international remittances. Migrants maintain a link with countries of origin through a complex network of cultural, economic, social and political relations, which can be sustained through new technologies and cheaper travel.
The trend of mounting international remittances in Kenya is likely to continue as more and more Kenyans are still seeking for work and study opportunities in different locations both national and international. Remittances inflow remained resilient in the 12 months to augustwith the cumulative flow having increased by The steady rise in remittances is attributed to the rise of the number of Kenyans in the Diaspora.
The Kenyan Embassy in Washington D. The passing of the new constitution in which allowed for dual citizenship has made those Kenyans who would wish to invest both in the countries they live and at home to increase remittances .
Lastly, there has been an aggressive campaign by the Kenya Government to involve the Kenyan Diaspora in the development agenda of the country. This was due to public investment, encouragement of small holder agricultural production and incentives for private investment.
This was due to the adverse weather conditions and the general elections. GDP expanded by 4. International remittances are transferred through formal and informal mechanisms.
Formal channels are particularly important since they can serve as an entry point to formal financial inclusion by facilitating and expanding access to other financial products and services, in both origin and destination countries Agunias and Newland, ; Gupta, Pattillo and Wagh, Hawala is one of the most widespread informal money transfer tools.
Originating in South Asian societies, it emerged as a system for debt transfer to facilitate long distance and cross-border trades, especially within a framework of imperfect legal context without sufficient payments methods.
The basic hawala mechanism works in the following way: An increasing interest in the topic of international remittances has developed over the past few years on the part of academics, donors, international financial institutions, commercial banks, money transfer operators, microfinance institutions and policy makers.
Some scholars believe that international remittances have positive growth effects in recipient economies , while other scholars highlight the negative growth effects of remittances .
The latter argue that remittances do not result in positive economic growth since the two variables are negatively correlated. There are also scholars who claim that remittances have no impact on economic growth of recipient countries .
For these scholars, there is no causal relationship between remittances and economic growth of developing countries. Some countries receiving large amounts of remittances e.
Statement of Problem Remittances are a source of inflow of cash, increasing national income considerably. The available empirical evidence is highly conflicted and to some extent they are informed by the available theoretical literature conversing on the ways through which remittances impact economic growth.Role of Remittance in Economic Development of Nepal This article deals with the analysis of direct impact of remittance on three development indicators viz.
GDP, GNP and PCI of the nation which are also the dependent variables of the proposed models.
The consistency of relationship between workers' remittances and economic growth is tested through sensitivity analysis by adding different additional variables in the basic model (Levine and Renelt, ).If the coefficient of workers' remittances provides consistent sign and significance then they refer that the results are robust otherwise the results are refer to fragile.
have important consequences for the economies that receive them, especially when many countries finding that remittance income helps families consume more. Consumption spending is a driver of short-term and cross-country analysis of a variety of countries that receive various amounts of.
The macroeconomic impacts of remittances flows on developing economies are not well understood. The paper is an attempt to understand the impact of inward remittances flows on per capita GDP growth in Bangladesh during effect of personal remittance on economic growth (Amjad,; Burney, ).
So international migration of lobor has positive effect on economic growth in a long run. remittances and economic growth in three countries, Bangladesh, India and Sri Lanka, by the impact of remittance income on economic growth in three South Asian countries, namely, Bangladesh, present a preliminary time-series data analysis of remittances and economic growth data in these.