Abstract
Given the findings of the previous chapter, the next logical step is to establish a new set of stylized facts about remittances derived from properly measured data. Because stylized facts identify the basic set of questions and issues to be explained, it is essential to begin with an accurate data set. Therefore, the chapter first undertakes a complete examination of the empirical characteristics of workers’ remittances,1 beginning with evidence on the growth of workers’ remittances over the past three decades and followed by regional and cross-country comparisons of remittance receipts. Then the chapter presents comparisons of workers’ remittances with other international balance of payments flows, with special emphasis on the volatilities of the various flows. Finally, the chapter examines evidence on the correlation of workers’ remittances with the most important macroeconomic variables. Wherever appropriate, the behavior of remittance flows to developing countries is emphasized.
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