bilateral flows of remittances

STD/PASS/TAGS – Trade and Globalisation StatisticsSTD/PASS/TAGS – Trade and Globalisation StatisticsSTD/SES/TAGS – Trade and Globalisation StatisticsSTD/SES/TAGS – Trade and Globalisation Statistics

Bilateral flows of remittancesBilateral flows of remittances

Fabiana Cerasa

OECD Statistics Directorate

AgendaAgendaItem 2.3Item 2.3AgendaAgendaItem 2.3Item 2.3

International Technical Meeting on Measuring Remittances, June 11-12, 2009, World Bank

STD/PASS/TAGS – Trade and Globalisation StatisticsSTD/PASS/TAGS – Trade and Globalisation Statistics

IntroductionIntroduction

• Update of the OECD paper “Working abroad – the benefits flowing from nationals working in other economies” (OECD 2003) by Anne Harrison, et al

• Data presented for reference year 2000 have been updated to 2005

• The present work is divided in two parts:

– Migration: a bilateral migration matrix is estimated starting from the matrix presented in the World Bank report South-South, Migration and Remittances

– Remittances: the bilateral migration matrix is used to obtain a global picture of the size of remittances flowing from one country to another

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MigrationMigration

• Starting point:

the World Bank bilateral migration matrix www.worldbank.org/prospects/migrationandremittances

• Some transformations to improve the quality of data and to follow the original paper– Removal of refugees (UN) and of migrants who acquired citizenships

(OECD database 2007)

– Allocation of migrants living in middle/high income countries, whose countries of origin are totally unknown (Development Research Centre on Migration, Globalization and Poverty-University of Sussex-2000)

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MigrationMigration

Millions 2000 2005

Total Migrants (UN) 175 191

Refugees (UN) 16 13

Acquisition citizenship (OECD database)

14 10

Total Unallocated 8 12

Total migrants allocated 137 155

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RemittancesRemittances

• Source of data: IMF Balance of Payments Yearbook (2005) Additional sources for no declaring countries

World Bank Migration and Remittances Factbook

World Bank South-South Migration and Remittances

OECD Statistics on International Trade

National sources

• Remittances=Workers’ Remitt + Compensation of Employees

• We end up with a total amount of Remittances: Credit: $ 234.1 bn Debit: $ 187.1 bn

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RemittancesRemittances

The Bilateral Remittances Matrix is built multiplying the remittance per capita sent from the destination country by the number of migrants living there grouped by country of origin

The final matrix shows remittances flowing between 60 countries and 18 regions

Assumptions of the model:Each migrant is supposed to send a fixed amount of money

home, regardless of the country of originOnly migrants send money to another countryThe country receiving the money sent is always and

exclusively the country of birth

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Key findings Key findings MigrationMigration

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2000 Millions Percentage

Coming from:

Going to: OECD ROW Total OECD ROW Total

OECD 22.2 34.1 56.3 16.2 24.9 41.2

ROW 2.5 77.9 80.4 1.8 57 58.8

Total 24.7 112 136.7 18.1 81.9 100

2005 Millions Percentage

Coming from:

Going to: OECD ROW Total OECD ROW Total

OECD 37.8 42.8 80.6 24.4 27.6 51.9

ROW 4.4 70.2 74.6 2.9 45.2 48.1

Total 42.2 113 155.2 27.2 72.8 100


Key findingsKey findingsRemittances’ flowsRemittances’ flows

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2000 $ Billion Percentage

Remittances To:

From: OECD ROW Total OECD ROW Total

OECD 38.9

29.3

68.2 35.1 26.4 61.5

ROW 0.7

42.0

42.7 0.6 37.9 38.5

Total 39.6

71.3 110.9

35.7 64.3 100.0

2005 $ Billion Percentage

Remittances To:

From: OECD ROW Total OECD ROW Total

OECD 74.9

43.3 118.3

40.1 23.2 63.2

ROW 4.4

64.4

68.8 2.3 34.4 36.8

Total 79.3 107.8

187.1

42.4 57.6 100.0


ConclusionsConclusions

• With exceptions, contrast between the OECD and ROWOECD: source of remittancesROW: destination of remittances

• Confirming the results of the previous work:OECD are not the main destination for migrants coming

from ROWMigrants remain mainly in the continent in which they

were born

• Migrants from OECD countries command higher wages and remit more per head than migrants from ROW countries

• In line with conclusions for 2000

• The quality of the data limits the validity of these conclusions9


Remittances questionnaire (1)Remittances questionnaire (1)

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Reporting country: Please complete as far as possible and return before 30 October 2008

Part A: Total remittances

(in million national currency or million USD) Credit (inflows) Debit (outflows)

Total (World) Total (World)

2007 Workers' remittances (item 391)

Compensation of employees (item 310)

Net compensation of employees*







Part B: Remittance transactions with five major** source and destination countries (in Mio USD)

Country name Country name Country name Country name Country name Country name Country name Country name Country name Country name










* Net compensation of employees = compensation of employees minus taxes and social contributions related to CoE minus transport andtravel expenditures related to short term employment ** Five major partner countries in terms of (workers' remittances + net compensation of employees) in 2007. These should be the most important in terms of money flows. If you can provide more details (data for more partners or metadata): they would be greatly appreciated.

Debit (outflows)Credit (inflows)(in millions of national currency or million USD)

OECD ad-hoc survey: Balance of payments statistics on workers' remittances and compensation of employees


Remittances questionnaire (2)Remittances questionnaire (2)

• This questionnaire has been sent to: Canada, Japan, Korea, Mexico, New Zealand, Norway, Switzerland, Turkey, USA and Hong Kong.

– Japan, Turkey, USA replied providing bilateral data

– Switzerland and HK provided only data with partner WRD

• One of the most striking result

comes from US data, and confirms

expectations:

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Thank you!

[email protected]

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bilateral flows of remittances

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