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One of the effects of rural‐to‐urban migration is the return of money and resources by the migrants to their respective home areas. Recently, it has been argued by several authors that such remittances represent a significant means for removing supply constraints to improved productivity in agriculture. In this paper the authors examine critically the available evidence on the rural impact of remittances. Subjects covered in the paper include the extent of the urban‐to‐rural remittances, the determinants of such financial flows and the use made in the rural areas of the money received. The paper concludes there is little evidence that urban‐rural remittances have been a significant means to rural economic development.
Rempel et al. (Sat,) studied this question.