Workers’ Remittances to India
An Examination of Transfer Cost and Efficiency
Bibliographic Data
| ID | 9952907 |
|---|---|
| Authors | Bhupal Singh (0000-0001-7528-6048, Reserve Bank of India, corresponding author) |
| Year | 2009 |
| Volume | 48 |
| Issue | 5 |
| Pages | 63-88 |
| Publication date | 2009-07-20 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Migration (JOURNAL) |
| Journal identifiers | ISSN: 0020-7985 • E-ISSN: 1468-2435 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-2435.2009.00540.x |
| OpenAlex | W1860877810 |
| Language | EN |
| Citations received | 4 |
| References cited | 7 |
Regarding the time efficiency of remittance transfer channels to India, the evidence suggests that traditional banking instruments are relatively inefficient as compared to the new information technology‐enabled products. Transfer arrangement of the Indian banks with overseas exchange houses has reduced the settlement cycle and the cost. Both the banks and money transfer operators (MTOs) are able to keep the transaction cycle low through the use of information technology‐enabled formats. Given that the average cost curve of the banks is located to the right of the average cost curve of the MTOs, greater potential exists for the improvement in overall efficiency of the two entities, particularly through the sharing of messaging and the access and disbursement networks to reduce the overhead cost. The estimates of error correction model reveal that the transaction fee and payment infrastructure are significant determinants of remittance flows, underscoring the scope of policy measures in influencing remittance inflows. The estimates indicate that over the medium to long‐term horizon, transaction cost emerges as the most dominant variable explaining the variation in remittances. The payments infrastructure also explains about 10 per cent variation in remittances over the medium‐term. The impulse response analysis further reveals that the favourable shocks to transaction fees and the payments infrastructure cause steady improvement in remittance inflows over the medium‐term horizon, thus underlining the importance of cost and efficiency in affecting the workers’ remittances
Business · Database transaction · Economic growth · Economics · Liberian dollar · Monetary economics · Payment · Remittance · Transaction cost · Transfer (computing · Computer Science · Diaspora, migration, transnational identity · Finance · Migration and Labor Dynamics · Migration, Ethnicity, and Economy
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,4 |
| Citation span | 2016 - 2023 (8) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 4 |