Chapter 13
Migration and Remittances in Bangladesh and Pakistan: Evidence from Two Host Countries GUNTUR SUGIYARTO, CARLOS VARGAS-SILVA, AND SHIKHA JHA
Remittance flows have been the object of much speculation in recent years. The worldwide nature of the global financial crisis implied that even sturdier capital flows such as remittances might succumb to deteriorating global conditions. Predictions on the level of the decline differed by country and region, but at one point worldwide remittance flows were expected to decrease by as much as 8 percent (Ratha et al. 2009a). Yet migrant remittances have once again proven to be strong and resilient, and the decline in remittances, although important, was short lived. In this context, it is necessary to analyze the impact of the reduction in global output as a result of the global crisis on migration and remittances to learn lessons for the future. Several studies have taken on the task of reviewing the dynamics of migration and remittances during the crisis (Barajas et al. 2010; Calì and Dell’Erba 2009; Martin 2009a; Naufal and Vargas-Silva 2010; Ruiz and Vargas-Silva 2010, 2011, to mention just a few). Nonetheless, there is a need for additional comparative analysis of the effect of the crisis on migration and remittances. The impact of the crisis on these flows may vary vastly across regions, because of differences in financial systems, migration patterns, and the stage of economic development. Therefore, it is useful to compare the effect of the crisis
This chapter is based on the results of the Asian Development Bank’s project Research and Development Technical Assistance (RDTA) 7436: Global Crisis, Remittance and Poverty in Asia. The views expressed in the chapter are those of the authors and do not necessarily reflect the views or policies of ADB.
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