Remittance flows from Thailand to mawlamyine, mon state, Myanmar

Abstract

The focus of this study is on the development impact of informal remittances sent by Myanmar migrant workers from Thailand to Myanmar. Methodologically, this is a qualitative research based on case studies. Information had been collected by doing field research with in-depth interviews to remittances senders, recipients and remittance service providers in Bangkok, Mae Sot in Thailand and Mawlamyine in Myanmar. Literature review was useful for doing analysis on the field data in theoretical approach. Matching case studies between migrants in Thailand and their household left behind give a portrait of remittance channel started from the hands of senders to the door of recipients. Firstly, determining factors on the propensity and the remittance sending behaviors of migrant workers had been explored to identify the capacity of sending remittances. Secondly, this study tried to portray clear picture of the whole remittance service operating system and the role of the players who are involving in various stages of the money transfer process as middle man between senders and the recipients. It highlighted the choice of remittance service by the migrant workers, types of services they are being offered and the costs and risks involving in informal money transfer system. Thirdly, the way the recipients utilized the remittances has been assessed to identify its impact on the economic development of recipients. The intensity of poverty and the lack of favorable investment climate are affecting the expenditure pattern of recipient household. Findings on the saving, spending and investment behaviors of the recipients showed that the larger volume of remittances is flowing into the unproductive expenditure rather than productive investment. This study raises a set of policy adjustment for Myanmar and the host country. It also points out other areas for further research relevant to remittances of Myanmar migrant workers and its development contribution.