Remit

The globalization trend has not left behind economy, culture, politics, nature and technology. In this modern globalized world, the free moment of goods, services, people, capitals, and information across the national boundaries are common phenomenon. So, due to the globalization induced by integration and advancement of the information, communication & entertainment technology, transportation facility and international financial & investment services, the world is witnessing a great deal of increment in movement of labor force and international trade. These increasing volumes of the international trade and free flow of labor forces has increased the volume of fund transfer across the globe. Thus, there has been a tremendous increase in migrant remittances to developing countries over the past couple of decades, and an even stronger growth of interest in remittances from policy makers and researchers as it has positive effect on development of the nation. The relationship between migration, remittance and development is shown by following figure:


Remittance typically refers to the proportion of their earrings that migrant workers send to their families in the country of origin; however the scope of transfer covered by remittance is much border. Economists often define remittances with reference to balance of payments statistics. These statistics are the principal source of country-level remittance data, and the underlying definitions give, at least in theory, a precise indication of what the numbers cover. It is increasingly common to regard remittance as the sum of three different entries in balance of payment. One of these components, workers’ remittances, broadly overlaps with the popular conception of remittances. Compensation of employees, is money that people earn by working outside the country where they formally live, for instance by cross-border commuting, seasonal work or employment at a foreign embassy. Finally, migrants’ transfers are the assets... [continues]

Read full essay