Did you send money to Nepal? In this article, we will discuss the socio-economic benefits of expatriates’ migration from developing countries.
These are, actually, the benefits of remittances on the recipient economies since the migration itself can be a disadvantage as it turns out to be a human resource shortage in an expatriate’s home country.
Rampant corruption, high levels of unemployment and political instability are some of the factors most third world countries share. These factors deeply negatively impact the economies, which pushes people into acute poverty and life becomes difficult. Many people, then, prefer to travel to foreign lands to earn a living. Thus they migrate and become expatriates and send remittances home.
Let’s now take a look at the socio-economic benefits of migration from developing countries.
Capital and property:- Expatriates earn about 25% more than in their home country and with that about 52% of them can save more than in their country of origin. These savings enable expatriates to invest in different opportunities. Money transfer to Nepal is one of the reasons why most of the expatriates own properties either in the host country or their home country or both.
A study noted that 62% of expatriates own properties in different parts of the world; 9% of expatriates own properties in both their home and host countries; 37% of expatriates own properties in countries of their residence, and 32% of expatriates own properties in their home countries.
Boost to industries:- With property investment comes a bright chance to invest in other businesses and industries such as the construction industry. If an expatriate buys property, they will also like to build either a house or a business set-up if the business is intended. It boosts a range of other industries which create jobs, and the overall society benefits from it. This, in turn, pushes the economic wheel of the recipient country into motion.
Enhanced skills:- Being an expatriate gives you a chance to get a first-hand experience of the newer technologies, being invented by the developed world, requiring new skills and then use those in your country of origin like expatriates send money to Nepal online through the mobile app. Chinese and Indian expatriates, for example, work at good positions in management, science, IT and engineering departments in the USA, UK and Canada. High posts in investment banking and law firms in the USA are held by Nigerians. Philippine expatriates are healthcare professionals and paramedics in most of the countries worldwide.
Job creation and tax increase:- Another benefit of being an expatriate is that they generate employment. They set up companies and establish businesses to hire people in different sectors from construction to retail. A study revealed that the 50 best expatriates with businesses in the Arabian Gulf have an overall net worth exceeding 50 billion USD. Philippine’s expatriates have invested in the food sector, recreation and media, which boosted the local economy. With these kinds of opportunities come the obligation to pay taxes which augments the national earning of a country which, in turn, enables the respective government to look after the basic needs of its population.
Conclusion:- In this article, we have learnt how the online money transfer to Nepal by the expatriates help stabilize the economy of the recipient country because with these foreign earnings comes a viable chance to save more and then invest more. In third world countries, people find it hard to make savings as they struggle really hard to even make ends meet with the meager incomes that they have and most unfortunately still, there are people who cannot find work due to the static capital flow in the economies of their countries. Remittances sent to Nepal or elsewhere through ACE help move the economic wheel.