Sources Of Migration

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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…show more content…
According to Orozco (2008) those sources move along three dimensions, explained in the following table Table 1 Income Sources of Migration (Orozco, 2008) Source In the Diaspora Through the Diaspora By the Diaspora Remittances Support Financial intermediation, micro finance institutions Monetary transfers operations Goods and services consumption Demand of home products Supply of raw materials from the country of origin Development of small business Capital investment Creation of minor property businesses Technic training in remittances receiving areas Manufacture of goods, tourism and nostalgic commerce Finance and Donations Construction capacity Projects identification and networking creation Social philanthropy Taking into account these dimensions is important to talk about transnationalism, because at the end it is an important part of the migration-development…show more content…
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
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