Remittance owners' financial capabilities: Can these bridge diaspora and development?

Abstract

Dollar remittances by overseas migrants are said to be a bridge between the diaspora and the development potential of migration unto origin countries. However, the productive usage of remittances hinges on the level of financial capabilities by remitters and their families. This paper presents data from a multi-year mixed methods project on rural hometown investing in the Philippines—seeking to determine if migrants or the diaspora will park their money back home. Self-reported levels of financial capabilities do not automatically lead to remittance hometown investing, with these communities providing different socio-economic contexts that affected remittance owners’ financial decisions.