Global and Development Perspectives
Edited by Laura Oso and Natalia Ribas Mateos
Chapter 17: Remittances in the Spain–Ecuador corridor: a gendered estimation through Bayesian networks
Under contemporary globalization, migration has emerged as a response to the reorganization of production among and within world regions (Orozco, 2002). Over 215 million people are currently living and working outside their country of birth, of which more than 171 million come from developing countries (World Bank, 2010). These migratory flows produce economic and social repercussions in their country of origin through migrant remittances (Orozco, 2002). The rising remittance flows constitute the second-largest and most stable source of foreign currency for the developing world (World Bank, 2010), but empirical evidence has shown that they can also produce an increase in inflation, appreciation of the real exchange rate, reduction in the labour supply and mixed reactions in the economic growth of receiving economies (Chami et al., 2008). At the household level, studies have found that remittances increase the recipient household expenditure on consumption and investment (Adams and Cuecuecha, 2010) and reduce the incidence of child labour and infant mortality (Zhunio et al., 2012), although mixed results are reported with respect to the rate of school enrolment (Calero et al., 2009; Giannelli and Mangiavacchi, 2010) and entrepreneurship (Amuedo-Dorantes and Pozo, 2010; Woodruff and Zenteno, 2007).
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