The Impact of the Remittances in Latin America

INTRODUCTION In Latin America, immigration and remittances are a structural feature in the economic development, social and political environment, due to the development and inequality of the region. Because of their relative importance, the tendency of immigrants and the impact of Latin American population transfer are the main topics analyzed in this study, focusing on reducing poverty and inequality. The purpose of this survey is to answer the following questions: Whether remittance provides financial support for regional development.

"By 2016 to 2017 household remittances of 17 countries in Latin America recorded growth of over 8%, far exceeding the World Bank's global economic growth rate of 2%. The export growth rate in 2017 (Manuel In the dialogue leadership for Orozco - 2017 - The Americas), the growth rate is nearly 9%. Major international banks with high possibility of banking system sanctions and abuses to wash funds will continue to provide remittance services Raising a serious problem.The bank complains that the remittance transaction tends to bear the risk of money laundering and other financial crimes, so the bank closes many attendant accounts of the remittance operator (MTO) The remittance service provider and the bank need to apply not only to "know your customers" (KYC) regulation, but also to customers' customers.

INTRODUCTION In Latin America, immigration and remittances are a structural feature in the economic development, social and political environment, due to the development and inequality of the region. Because of their relative importance, the tendency of immigrants and the impact of Latin American population transfer are the main topics analyzed in this study, focusing on reducing poverty and inequality. The purpose of this survey is to answer the following questions: Whether remittance provides financial support for regional development.

It contributes to literature by studying the long-term impact of remittance on economic growth. The authors argue that remittances account for the majority of the income of developing countries, during which (1995-2004) increased by 1% per year. The authors believe that the impact of remittances on economic growth is well known. In other words, the influx of remittance will increase consumption. As a result, as GDP increased, policy makers showed interest in these findings. The authors analyzed samples from 84 countries using annual observations (1970-2004) to further analyze the impact of remittances on long-term growth. The results obtained by the panel growth regression method by the authors unfortunately indicate that remittance is not significantly associated with long-term growth. These results may disappoint policy makers as they may be undeveloped infrastructure for remittance channels.