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Evidence that Sweden is not a great place for economic migrants from developing economies. Remittance extremely low compared to other developed countries: study

Sunday, 26 June 2011
One major factor that pushes people from developing countries to developed ones is the chance to be able to build a life and support families back home where they came from. As such remittance has been seen recently as one way in which immigrants support their families back home but immigrants in Sweden fare badly compared to those in other developed countries as such remittance from Sweden is very low.

Despite the fact that Sweden prides itself in being an important donor of development aid, there is virtually no knowledge about the transfers of funds made by international migrants in Sweden. The scarcity of knowledge on the volume and determinants of remittances from Sweden limits the possibilities to enhance the development impact of these money transfers.

A recent remittances study from Swedish institute of future studies which looks into how much financial transfer of gifts/ economic support to relatives in developing economies from Sweden has evolved in the past years. It shows that, compared to other developed countries, remittance from Sweden is relatively poor.

The Swedish institute of future studies which presented the finding in one of its working papers reflect what we reported on this network at the beginning of this year that Sweden was not a great place for poorer immigrants to better their lives and improve on their economic situation. Thinking of their families back home is very important and given that most of them come from countries with immense corrupt governments, official economic aid such as that provided by the Swedish government will never trigger down to affect their families.

Direct remittance has been seen as the best way to reduce poverty because the money goes directly to household thereby undercutting the top corrupt bureaucrats. Even the United Nation and the World Bank acknowledged that flows of migrant remittances to developing
Countries are more than twice as large as the flows of official development assistance.

But Sweden is not yet toned to assist economic development this way. Household Income Survey (HEK) compiled by Statistics Sweden was used to determine the level of immigrants’ incomes. It provides the first analysis of demographic determinants of remittances from Sweden based on official household survey and register data.

By exploring a data set that also includes non-migrant households, researchers present a unique comparison of patterns of gift-giving and intra-family support between migrant and non-migrant households.

According to their results, the flows of remittances to developing countries from Sweden appear to be relatively small in comparison with remittance flows from other developed countries.

Their analysis shows that the general propensity to give economic support to relatives is similar among native Swedes and migrants from developing and non-developing countries, but the patterns of gift-giving and intra-family economic support differ significantly over the life course between individuals from different country groups.

Native Swedes tend to give gifts and economic support to relatives at higher ages and when they have adult children who have moved away from home. Migrants from developing countries tend to be younger and have children living at home. But this still does not affect their zeal to give but other factors such as incomes will limit their zeal to give.

The propensity of native Swedes to remit increases with increasing income. Among migrants born in developing countries, other factors than income seems to be more decisive for the propensity to remit. See details of the study here which also through more light on the factors affecting the chances of giving gifts and remittance.
By Scancomark.se Team

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