Back in 1776, Adam Smith stated that countries could better off their national income by indulging themselves into trades, and since then all the countries have been extensively following this rule to provide their country with steady growth. In an earlier time, labour was a rigid factor that couldn’t relocate itself depending upon the requirement of the job. However, in late 19s David Ricardo stated comparative advantage theory of international trade and the countries then opened up their market for the foreign business tycoons. This resulted in moveable labour that leads to massive revenue generation for the states.
How Remittances And Migration Related
There is no such definition of remittance as well as it cannot be measured, it can be defined as the total transfers from the immigration countries to the home country of the immigrant. The flow of remittance consists of both of the transfers in order to support the family and kinship in the country of origin. It also includes transfers of savings and for future consumption as well. While the altruistic type of behavior is required for the first one and the second one can be termed as simple life cycle model.
Is The Number Of Immigration And Remittance Rising!
The ability to relocate depending upon the requirement of the job, labors are moving from one place to another. It has lead to the absolute rise to remittances. The total number remittances that are sent by the immigrants to their home are increasing considerably in the last couple of decades. The value of remittances in the country that are developing are estimated to be more than 240. Recent studies show that the remittance outflow from high-income countries is more than $135. The transfer of both the family for the support and savings may be a different approach which is generally considered as temporary or permanent. It can view as transfer between the household as well as national borders to support it.
Reality Check – How Much Remittance Is Affecting Migration
Remittances can also be motivated as the flow of remittance wishing to hold the asset as well as savings in the origin country, which may in the form housing stock or capital related investment or may be of savings type. However, this transaction may be affected by the positive possibility of return which may be including preference in holding asset or savings in origin country. If you take the example of Germany the volume has increased from 0.3% of GDP to 150% in between 2003 and the present date.
Migrating For Good Remittance – Is It Safe?
When it comes to remittances, then it has both good and bad effect on the economy. On the good side, remittance can lead to a rise in foreign exchange and may give a certain boost to the domestic economy. On the other hand, if the country that has a good level of remittance in their national income accounting may lead them to the poverty traps if the technological condition of the country is not okay. For instance, Philippines earns more than 42% of its GDP from the remittances, but the poor technical condition of the country binds the wage to a lower rate in this country leading to the vicious circle of poverty.
So we conclude that if the migrants who are temporary have more family staying abroad have the possibility to remit more. Wire transfer to Vietnam or any other countries can be done by using secure mediums like InstaReM, MoneyGram, Western Union, the transfer will be safer, and it will also help in explaining the expectations of the fulfilment of one’s family, and satisfy this expectation can view as a reward that can be paid in returning home during later stages as insurance.