Analysis of the impact of remittances on income distribution in different countries

Abstract

The analysis of the impact of the remittances allows us to know if remittances have a significant effect on income distribution in the different countries. In this paper we will explain, through the introduction of novel empirical models, if the remittances really have a significant effect and, if they have, what kind of effect it is, positive or negative. In this essay we will explain firstly a compilation of the most important literature about this topic. Then, we will explain the type of model estimated and the results of the estimation. After that, we will comment the impact of remittances on the different countries. At the end, our conclusion will be that it is not possible to obtain a single empirical result, because depending on different factors, remittances will affect significantly or not significantly on income distribution in a country. We will also state that, if they are significant, the result is uncertain depending on those factors, this means, they could increase or decrease the inequities on income distribution.