These are transfers of money or goods by foreign workers to their home countries. These financial flows are a significant aspect of global migration patterns, representing a key link between sending and receiving nations. For example, a construction worker from Mexico sending money earned in the United States back to their family in Mexico exemplifies this economic activity.
Such transactions play a vital role in the economies of many developing nations, often exceeding foreign direct investment and official development assistance. They can contribute to improved living standards, education, healthcare, and entrepreneurship in recipient communities. Historically, these transfers have provided crucial support during economic downturns and natural disasters in home countries, acting as a safety net for vulnerable populations.
