Essay – International Trade

How relevant is international labour migration within the globalisation process? For the receiving country are the effects of remittances always good? Explain in relation to one or more countries that are dependant on remittances.


Migration is often put in the spotlight debating whether it has a negative or positive impact on sending and receiving country. This paper reviews recent theoretical and empirical economic literature to examine how important is international labour migration and are remittances effects always positive. We shall focus on Mexico as data sources are consistent and thorough i.e. Mexican consensus and there is vast research readily available on its migration experience between United States. First we will look at income gains to migrants and then effects on labour market. Followed by a selection of effects of remittances on inequality, human capital formation and productivity and rural development.

Findings show that migration does indeed increase global income but it affects labour market wages. In addition the effects of remittances is generally positive for the receiving country.



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