International migration and development: The socioeconomic impact of remittances in Colombia

Abstract

Remittances to Colombia have grown rapidly over the last few years, and their economic significance is increasing apace. This article provides a detailed analysis of the economic and social effects of these currency flows and draws attention to the potential long-term risks involved. Accordingly, it analyses trends in remittances in Colombia over the last few years, paying special attention to their importance to the country's economy and the socioeconomic characteristics of their senders and recipients. This analysis is followed by an assessment of remittances in Colombia which indicates that, while they may help to improve the situation of the country, they also entail a number of costs that may, in the long term, be detrimental to its economy.