ABSTRACT
This chapter attempts to review the literature on the impact of remittances on labor exporting countries. It examines available remittance data and attempts to estimate the potential foreign exchange earnings that may be derived from an organized program to attract remittances to the labor-exporting countries. The chapter reviews the literature and focuses on the need for a broader definition of remittances, as well as on an evaluation of the incentive effects of interest and exchange rate policies. It highlights the nature of the interest and exchange rate policies of the Anglophone Caribbean countries to demonstrate the scope for improving the monetary policy environment in these countries. The chapter also examines the available data on the magnitude and growth in remittances in a selection of labor-exporting countries. It explains the position that remittances and other private transfers by migrants to their origin countries have been an unexploited source of economic development financing in the Anglophone Caribbean countries.
