Migrant Remittances to Latin America: Reviewing the Literature

This paper attempts to summarize the literature on remittances (by Latino communities in the United States by examining five countries: Mexico, El Salvador, Guatemala, the Dominican Republic and Colombia.

The paper focuses on:

• The impact of remittances on the countries studies;
• Proposals to enhance the benefits and reduce the costs of remittances.

Further, the paper recommends additional research on issues, such as:

• Estimating remittances;
• Who sends remittances;
• How remittances affect their families and communities in the United States;
• How ethnic linkages can be mobilized;
• The direct and indirect effects of remittances on the trade in goods and services, income growth, net gain to the economy, and contribution to savings;
• The financial and regulatory structure of money transfers, reporting requirements, the viability of partnerships, and the existence of programs for small business development;
• Ways to privately channel remittances to promote development and to link international grants and loans with remittances;
• The use of the remittances of returning migrants, particularly those who return permanently.

Finally, the author suggests that proactive efforts could:

• Encourage the continued flow of remittances through official channels;
• Reduce the transmittal costs;
• Encourage productive uses of the funds;
• Guarantee good exchange rates;
• Create conditions where investment would be a rational and profitable decision, as well as other special projects aimed at providing credit to start small businesses.