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Chapter 1 Prospects for the Global Economy 1 Global growth 3 Long-term prospects and poverty forecast 8 International finance 10 Commodity markets 14 World trade 16 Risks and uncertainties 18 Notes 22 References 23 Chapter 2 The Potential Gains from International Migration 25 International migration trends 26 The demographic challenge 29 Migration and its development impact 31 Returns to households 34 Returns to factors of production 41 Caveats—what the model leaves out 48 Notes 51 References 53 Chapter 3 The Policy Challenges of Migration: The Origin Countries’ Perspective 57 The migration decision and its impact on migrants and their families 59 Low-skilled migration 64 High-skilled emigration 66 Diasporas 70 The return of expatriates can benefit development 70 Temporary migration and international agreements 72 Notes 76 References 78 iii Contents Chapter 4 Trends, Determinants, and Macroeconomic Effects of Remittances 85 Remittance data and trends 86 Factors affecting remittance flows 92 Macroeconomic effects of remittances 99 Annex 4A.1 World Bank data on remittances 105 Annex 4A.2 A model-based estimation of informal remittance flows 108 Notes 110 References 112 Chapter 5 Remittances, Households, and Poverty 117 Remittances, poverty, and inequality 118 Remittances and household consumption smoothing 122 Remittances and indirect effects on household income 123 Remittances, savings, and investment 125 Annex 5A.1 Poverty simulation model: description and results 127 Notes 129 References 131 Chapter 6 Reducing Remittance Fees 135 Remittance fees and costs 136 Factors underpinning high remittance fees 144 Policies to reduce remittance costs 147 Remittances and financial institutions 149 Annex 6A.1 A stylized remittance transaction—structure, players, instruments 151 Annex 6A.2 Licensing and registration requirements for remittance service providers 152 Annex 6A.3 A brief history of some remittance service providers 153 Notes 154 References 156
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