Remittances of Paraguayan Migrants to Argentina: Prevalence, Amount, and Utilization

Marcela Cerrutti, Centro de Estudios de Población

This paper contributes to discussions on the role of migration in development by analyzing the remittances of Paraguayan migrants to Argentina. Despite its historical significance, there is little information about the economic consequences of the flow and its contribution to development. Drawing on original data collected in four sending communities and their counterparts in Argentina, the specific objectives are: a) to understand the decision to remit by describing and modeling their determinants; b) to assess the amount remitted, transfer mechanisms, and aggregate contribution to sending economies; and c) to investigate how remittances are used. Results support perspectives that view remittances as a central contribution to the well-being of migrant families. However, while housing is a main destination for a large portion of remittances, other forms of investment, such as business formation, are almost non-existent. We highlight the importance of communities’ economic context for understanding the connection between migration and development.