IMPACT OF THE COVID 19 PANDEMIC ON REMITTANCES: WORLDWIDE, REGIONAL, NATIONAL

Abstract

Remittances associated with the migrant workforce represent a significant part of the total remittance flows that are transmitted by migrant workers, usually to their families or friends. The volume and frequency of remittance flows is determined by several factors, such as: the number of migrant workers; salaries; economic activity in the country of origin / recipients; exchange rate; political risk; facilities for the transmission of funds; marital status; the level of education of migrants; if the migrant is accompanied by a wife / children; the length of time he migrated; family income level; the rate index calculated between the country of origin and the country of destination. Research on the use of remittances shows that most is used for food, clothing and health services, construction or rehabilitation of housing, land acquisition or other durable goods and only to a small extent "productive investments" (with multiplier effect of creating new jobs). The productive use of remittances represents "any activity that has the potential to generate additional income or to guarantee future expenses". These financial flows as well as labor migration have been severely affected by the COVID-19 pandemic. This paper makes an analysis of the evolution of remittances during this period.

Keywords

• labor force migration
• remittances
• covid19