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

 When we say remittances it tells about of course financial or monetary remittances and this is generally a private money transfer that migrants made individually or collectively generally back to their country of origin. It is possible for transfers to be sent from countries of origin to countries of destination. Migrants travel because of economic reasons they move to make an improvement not just for their own lives but also for the lives of their own families. They give aid and improve the lives of their family, community, and even their country through their remittances. Remittances may also be detrimental to economies that depend on remittances.

Remittances help the economies, and there are lots of benefits from remittances. First remittances support economic growth. The remittances can increase household income and thus like it can be used to alleviate poverty. Many struggling countries like the Philippines can be beneficial from relying on remittances because the money can be used to buy the basic needs of those who are poor like food, clothing, and other things essential to everyday living. The money from remittances can be used as an investment in a dependent country. They may be used in establishing businesses that are essential for economic prosperity, it is also used to fund education and in securing the health of the individual. As remittances provide funds for business start-ups it also reduces the labor supply creating a culture of dependency that inhibits economic growth. With help of remittances, usually help countries prioritize buying their own products since it decreases exportation. It has also contributed to increasing the GDP of one country since remittances represent the largest source of foreign exchange earnings. On the other hand, it can have disadvantages too that can damage the economy. Harmfully, the remittances lead to currency appreciation. This is the reason why the export products have higher prices than the import ones. When the imports become cheaper then there will be more increase than the exports. This can affect the production markets by reducing the availability of jobs.

Remittances make people's life easier and more convenient, especially those families of migrants. They are not only helping their family but also helping the government. Migrants are the one who sacrifices the most but contributes a lot. But on the other side remittances can be harmful too. What is important here is that remittances are used for good and appreciated by people, community, and country that depends on them.

Migrants go to other places because of economic reasons - it is to make not only their life improve but also to make their families rich. They are a big help in giving aid to their communities and country.

The benefits of economies dependent on migrant remittances are first, remittances support economic growth. This help the household income increase so therefore it alleviates poverty. The money from remittances can buy the basic needs of poor people like food, clothing, and other things essential to everyday living. Remittances can be used as an investment in a dependent country, they provide funds for business start-ups it also reduces the labor supply creating a culture of dependency that inhibits economic growth. With help of remittances, usually help countries prioritize buying their own products since it decreases exportation, contributing to increasing the GDP of one country since remittances represent the largest source of foreign exchange earnings. They may be used in establishing businesses that are essential for economic prosperity, it is also used to fund education and in securing the health of the individual.

The detriments of economies dependent on migrant remittances are first remittances harmfully lead to currency appreciation. It is due to the reason that the export products have higher prices than the import ones. When the imports become cheaper then there will be more increase than the exports. This can affect the production markets by reducing the availability of jobs.