ABSTRACT
In the last decade various studies have pointed out the macroeconomic impact of remittances, explaining that for many developing countries the volume of remittances has structurally surpassed official development aid (Addison 2005; OECD 2012). Thereby the argument is made that these remittances have positive effects, not only at a macroeconomic level, but also for villages and families in emigrants’ countries of origin (Castles and Miller 2009; Mazzucato and Kabki 2007). With regard to the influence on families it is certainly true that financial remittances have a direct impact on families’ livelihoods, potentially leading to lasting poverty reduction. At the local level, the support for (local) economies through investments in real estate and investment in small and medium enterprises, notably in urban locations, is also seen clearly (Smith 2007). Beyond these targeted allocations of remittances it may be argued that remittances often also have an overall economic multiplier effect, that is, the activities migrants or their local counterparts incite will, in turn, result in a whole range of other kinds of activities and services.
