Question

What are the benefits and detriments of economies dependent on migrant remittances

Answer 1

Remittances flow improves the livelihood of a family and the economy of a country.

Explanation:

• There are few benefits and detriments of economies dependent on migrants. When migrants flow, remittances help in improving the livelihood and living conditions of the family.
• Proper healthcare and other facilities like education and sanitation can be attained through remittances. They also help in acquiring asset and business investments.
• While these are benefits, the detriments of remittances include, in case of migrants it reduces labour supply. In case of migrants, consumption of goods increases and prices hike.
• Apart from that, an important detriment is that remittances increase the country's competition in the market. Thus, these are few benefits and detriments on remittances.