We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Economic Development in Kerala: Can Migration to the Gulf Spur Economic Growth in South Asia?
- Authors
Almajdoub, Sumaya
- Abstract
Can remittances spur economic growth in labour exporting countries? This paper uses the case of Kerala - an Indian state that has witnessed increased labour migration to the Gulf since the 1970s oil boom - to argue that the remittances sent by migrant workers help spur economic growth. This is an important finding that is relevant to policymakers and the international development community. Remittances continue to constitute a substantial percentage of GDP in a number of countries, and they have even surpassed official development assistance in South Asia. However, there are obstacles that prevent utilizing the full potential of remittances to spur economic development. Workers send remittances only after repaying the high costs of recruitment, visas, and travel, while weak legal frameworks in the Gulf put workers at the risk of exploitation. Other obstacles for workers include the high costs of international remittance transactions. Finally, to utilize the full potential of remittances, labour exporting countries face the challenge of effectively investing the inflow of remittances on the productive sectors of the economy to promote long-term growth.
- Subjects
KERALA (India); ECONOMIC development; LABOR mobility; EMPLOYEES; GROSS domestic product; ECONOMIC conditions in South Asia; INDIAN economy
- Publication
Undercurrent, 2016, Vol 12, Issue 1, p19
- ISSN
1712-0934
- Publication type
Article