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The authors empirically examine the determinants of remittance flows at the cross-country level. They consider, among other things, the significance of the level of migration, the education level of migrants, and financial sector development in determining remittances. Given the potential endogeneity problems, the migration and financial development variables are instrumented in the estimation. They find that the migration level is the main driver of remittance flows, even after controlling for the endogeneity bias through instrumental variable estimation. The authors also find that the education level of migrants relative to the population in home countries, the size of the economy, and the level of economic development of recipient countries adversely affect remittance flows. While they find the effect of financial sector development to be positive, its significance is not strongly supported in their analysis.

Debt Markets --- Developing Countries --- Finance and Financial Sector Development --- Foreign Direct Investment --- Government Policies --- Health, Nutrition and Population --- Home Countries --- Household Surveys --- Macroeconomics and Economic Growth --- Migrant --- Migrant Workers --- Migrants --- Migration --- Number of Migrants --- Official Development Assistance --- Policy --- Policy Implications --- Policy Research --- Policy Research Working Paper --- Population --- Population Policies --- Progress --- Recipient Countries --- Remittance --- Remittances

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The authors empirically examine the determinants of remittance flows at the cross-country level. They consider, among other things, the significance of the level of migration, the education level of migrants, and financial sector development in determining remittances. Given the potential endogeneity problems, the migration and financial development variables are instrumented in the estimation. They find that the migration level is the main driver of remittance flows, even after controlling for the endogeneity bias through instrumental variable estimation. The authors also find that the education level of migrants relative to the population in home countries, the size of the economy, and the level of economic development of recipient countries adversely affect remittance flows. While they find the effect of financial sector development to be positive, its significance is not strongly supported in their analysis.

Debt Markets --- Developing Countries --- Finance and Financial Sector Development --- Foreign Direct Investment --- Government Policies --- Health, Nutrition and Population --- Home Countries --- Household Surveys --- Macroeconomics and Economic Growth --- Migrant --- Migrant Workers --- Migrants --- Migration --- Number of Migrants --- Official Development Assistance --- Policy --- Policy Implications --- Policy Research --- Policy Research Working Paper --- Population --- Population Policies --- Progress --- Recipient Countries --- Remittance --- Remittances

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This paper explores the impact of remittances on poverty, education, and health in 11 Latin American countries using nationally representative household surveys and making an explicit attempt to account for one of the inherent costs associated with migration-the potential income that the migrant may have made at home. The main findings of the study are the following: (1) regardless of the counterfactual used remittances appear to lower poverty levels in most recipient countries; (2) yet despite this general tendency, the estimated impacts tend to be modest; and (3) there is significant country heterogeneity in the poverty reduction impact of remittances' flows. Among the aspects that have been identified in the paper that may lead to varying outcomes across countries are the percentage of households reporting remittances income, the share of remittances of recipient households belonging to the lowest quintiles of the income distribution, and the relative importance of remittances flows with respect to GDP. While remittances tend to have positive effects on education and health, this impact is often restricted to specific groups of the population.

Debt Markets --- Finance and Financial Sector Development --- Health, Nutrition and Population --- Household Surveys --- Human Capital --- Macroeconomics and Economic Growth --- Migrant --- Migration --- Policy Research --- Policy Research Working Paper --- Population Policies --- Poverty Reduction --- Progress --- Recipient countries --- Remittances --- Respect --- Rural Development --- Rural Poverty Reduction

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The paper augments Holmstrom's (1982) team production model in the context of aid effectiveness. The analysis shows how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the donors. The empirical findings support the theoretical prediction with regard to donor proliferation. However, this raises the question whether the current efforts in the international aid community with regard to donor coordination can in fact solve the aid proliferation problem.

Aid --- Aid effectiveness --- Aid projects --- Aid recipients --- Coastal and Marine Environment --- Development Assistance --- Development Economics and Aid Effectiveness --- Development issues --- Development policies --- Disability --- Economic growth --- Education --- Effectiveness of aid --- Environment --- Gender --- Gender and Health --- Global Development --- International aid --- Macroeconomics and Economic Growth --- Policy Research --- Policy Research Working Paper --- Population size --- Progress --- Recipient countries --- Recipient country --- Recipient government --- Recipient governments --- School Health --- Social Protections and Labor