South-South Migration and Remittances

This paper outlines efforts to compile a database on bilateral migration and remittance flows for 212 countries based on national censuses and other sources. It reviews literature and presents findings on the extent, determinants and socio-economic dimensions of South-South migration.

The paper gives an overview of recent trends in South-South migration and compares remittance costs in South-South and South-North routes. Findings include:

• Most South-South migrations are estimated to take place between countries with contiguous borders and relatively small income differences;
• South-South remittances may range from 9 to 30 percent of developing countries remittance receipts;
• Impact of South-South migration on income of natives and migrants is smaller than that of South-North migration;
• Cost of South-South migration is higher than that of North-South migration due to lack of competition in the remittance market, lack of financial development and high foreign exchange commissions.

The paper suggests that policy-makers should pay attention to challenges faced by developing countries as places of origin and as destinations of migrants.