Migration Development

The migration-development nexus has been a widely discuss topic with mixed results. For some scholars migration is prejudicial for the countries of origin because it reduces the labour force, remittances can affect the export sector by increasing the value of the exchange rate. While others say it is helpful for alleviating necessities for the poor, increase the investment in education and health and in some cases leads to entrepreneurship by the creation of small and micro enterprises.

One of the argument in favour of this nexus , is that remittances can be" a bottom up source of development finance and transnational engagement of migrants with the development of their societies" (De Haas, 2007) as the case of Cape Verde , a nation of

In this last section some case-studies will be used in order to exemplify it and if possible determine patterns between them.

Remittances

Remittances have become one of the most important capital inflows worldwide, for example after the economic crisis in Ecuador , this inflow was equivalent to the 7.2% of the GDP and has vary between 7 and 5 % until the global financial crisis in 2008 where began to decrease until 2.8% for 2016 (World Bank) .

According to Nyberg-Sorensen, Van Hear and Engberg-Pedersen (2002) are extremely important for developing countries, in some cases are higher than aid and represent a constant source for this country. Nevertheless, the data we have sometimes is not the real one, because most of the times the remittances that comes from informal channels are not taken into account.

Remittances can have multiplier effects for development but also can be detrimental. Mexico is a good example of both

Carling (2006) says that the benefits of this inflow depend on the temporal and social distribution of them and he explains it in the following table.

Another important factor to take into account is the conditions of the locality and its macroeconomics, for example the Philippines in the Asian financial crisis faces a more favorable exchange rate what increase the remittances they receive. The effects were in the non-consumption areas, especially in education and the reduction of child labor, more hours dedicated to self-employment and capital-intensive entrepreneurship (Yang, 2008).

Remittances also has a vast influence in the informal sector. Last year Chatterjee and Turnosvsky explains that the increase in remittances is associated with the allocation of capital and self-employment in the informal sector , what can result in the contraction of the GDP because the productivity of the formal sector will be reduced due to the allocation of labor and capital in the informal sector (Chatterjee & Turnovsky , 2017) . This could be an explanation to the arguments against the migration-development