Emigrants' Remittances, NonTraded Goods and Economic Welfare in the Source Country

Emigrants' Remittances, NonTraded Goods and Economic Welfare in the Source Country This article analyses the welfare effect of emigration on a source country whose output consists in part of nontraded goods but where emigrants make remittances to the source country and the remittances are used solely for consumption. Within this framework, the welfare effect of emigration is indeterminate, depending on the magnitude of remittances. In particular, welfare will fall where remittances merely maintain source country nominal income at its preemigration level. Where remittances are sufficiently large they can compensate for the emigrationinduced disruption of internal trade in internationally nontraded goods. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Studies Emerald Publishing

Emigrants' Remittances, NonTraded Goods and Economic Welfare in the Source Country

Journal of Economic Studies, Volume 13 (2): 7 – Feb 1, 1986

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0144-3585
DOI
10.1108/eb002623
Publisher site
See Article on Publisher Site

Abstract

This article analyses the welfare effect of emigration on a source country whose output consists in part of nontraded goods but where emigrants make remittances to the source country and the remittances are used solely for consumption. Within this framework, the welfare effect of emigration is indeterminate, depending on the magnitude of remittances. In particular, welfare will fall where remittances merely maintain source country nominal income at its preemigration level. Where remittances are sufficiently large they can compensate for the emigrationinduced disruption of internal trade in internationally nontraded goods.

Journal

Journal of Economic StudiesEmerald Publishing

Published: Feb 1, 1986

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