Abstract

Over the last three decades scholars and policy makers have made efforts to evaluate the potential for international remittance transfers as the tool for economic development in the context of different countries and for different time periods. There is evidence that remittances increase student retention rate in El Salvador (Edwards and Ureta 2003) and remittances increase investment in entrepreneurship (McCormick and Wahba 2001, Dustman and Kirchman 2002, Woodruff and Zenteno 2007 and Mesnard 2004). Taylor, Rozelle and Brauw (2003) have reported increased expenditure on agricultural investment. Osili, (2004) finds that remittances have increased expenditure on housing. Yang (2006 & 2008) has shown that remittances have increased schooling and entrepreneurial activities in Philippines. Adams (1998, 2010, and 2013) shows that remittances have increased landholding in Pakistan, expenditure on housing and education in Guatemala and health, housing and education expenditure in Ghana. Studies (Zachariah & Rajan, May 2007, December 2007) focusing on local effects of remittances in countries like India, Bangladesh and Pakistan have cited that remittancebased investment seems to be taking over from remittance-based consumption, as the new driver for economic growth (see Combes and Ebeke, 2011; Quisumbing and Mcnien, 2010 and Rosenzweig and Stark, 1989 for discussion of consumption use of remittances). These studies deal with specific issues; while the book by Matt Bakker has a broad objective to focus on the agenda of using remittances for economic development in general.