Research of the impact of remittances of migration processes on the economy and economic security of donor and recipient countries

Abstract

Purpose: to reveal the main aspects of remittances and migration processes. Analyze the impact of remittances of migrants on the socio-economic factors of the country of origin of migrants. Examine the shortcomings of remittance accounting systems. Disclose the main mechanisms for transferring money or other values using informal money transfer systems. Identify the risks of their use in the context of the economic security of the donor country and the recipient country of remittances. Discussion: the influence of migrant’s remittances occupies an important place in the economies of donor-migration countries; however, migrant’s remittances have both a positive impact on the socio-economic factors of the country of origin and negative ones. Labor and other migrants often use informal money transfer systems to transfer money to the country of origin. This may be due to both the geographic and cultural characteristics of some migrants and the fact that financial institutions are still underdeveloped in some countries of the donor of migration. However, it should be noted that very often these systems are used by illegal migrants who do not have the right to use official money transfer systems due to the fact that they are outside the law. Results: we note that the development of illegal labor migration and the spread of informal remittances are very often interconnected. These systems develop and function in an environment in which illegal labor migrants are involved in the “shadow” economy.