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Title: Immigration Policy, Remittances, and Growth in the Migrant-Sending Country
Authors: Dessy, Sylvain
Rambeloma, Tiana
Keywords: Remittances
migration
growth
education
general equilibrium
child labor
Issue Date: 2009-05
Series/Report no.: Cahiers du CIRPÉE;09-15
Abstract: As evidence accumulates to expose the ineffectiveness of foreign aid, there are increasing calls for rich countries to open up their immigration policies so as to enable migrants' remittances to substitute for foreign aid as a growth-stimulant in poor, migrant-sending countries. In this paper, we use an endogenous growth model to argue that the growth effects of transnational migration and remittances are entirely mediated by the human capital profile of emigrants, as determined by immigration policy at the destination country. Quantitatively we find that when immigration policy at the destination country provokes a "brain drain", growth is negatively impacted in the sending country despite remittances. The reverse is true when immigration policy targets workers with low levels of human capital.
URI: http://132.203.59.36/CIRPEE/cahierscirpee/2009/files/CIRPEE09-15.pdf
https://depot.erudit.org/id/003014dd
Appears in Collections:Cahiers de recherche du CIRPÉE

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