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production distortions that differ across countries
strong increasing returns to scale
allowing factors to move increases the volume of goods trade and leads
countries to be relatively well endowed with factors used intensively in
their export industries.
the HO observation becomes a result of trade, not a cause. 02-ECA_Migration.qxd 11/10/06 5:28 AM 58 Page 58 Migration and Remittances: Eastern Europe and the Former Soviet Union FIGURE 2.1 Leading 20 Remittance-Receiving Countries in the World
(percentage of GDP in 2004)
Bosnia and Herzegovina
West Bank and Gaza
0 5 10 15 20 25 30 35 40 45 50 percent
Source: IMF Balance of Payment Statistics:, World Bank.
Note: Received remittances = received compensation of employee + received worker’s remittances + received migrants’ transfer. Lighter bars in the graph are ECA
countries. As before, the problems of data quality are pervasive because of the difficulties of measuring remittances sent outside of the formal financial
sector are very difficult to quantity. Further complicating these data
problems are that large year-on-year increases in remittances may reflect
improvements in central banks’ remittance recording systems rather
than changes in migrants’ behaviors. Data
While remittances have increased dramatically in a number of countries, they have slowed for others. A review of remittance flows over
the past nine years demonstrates this pattern (figure 2.3). Interestingly, while remittances from migrants who have lived out of their 02-ECA_Migration.qxd 11/10/06 5:28 AM Page 59 Migrants’ Remittances 59 FIGURE 2.2 Remittances as a Portion of GDP in Eastern Europe and the Former Soviet Union, 2004
Bosnia and Herzegovina
0 5 10 15 20 25 30 percent
Source: IMF Balance of Payments Statistics.
Note: Received remittances = received compensation of employee + received worker’s remittances + received migrants’ transfers. Albania and Slovak Republic are
2003 data, other countries are 2004 data. GDP is $ converted current price. home countries for more than one year represent the largest share of
inflows, remittances from migrants who have lived abroad for less
than a year represent an increasingly large share.
Not all migrants, however, send remittances, particularly in those
cases where the stay in destination countries is short. Surveys conducted for this report found that in Bulgaria, 80 percent did not; in
Bosnia and Herzegovina, 37 percent; and in Romania, 62 percent.
Generally remittance flows in ECA follow the same two-bloc pattern
as migration (table 2.1). The EU and the middle-income Commonwealth of Independent States (CIS) countries are the main sourc...
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- Winter '14