Remittances between countries in regional integration processes: transfers from migrant Paraguayan families in Argentina

Eduardo Bologna, Universidad Nacional de Córdoba

The south-south migration is gaining importance with the increased costs arising from restrictions imposed by developed countries. This study examines the receipt of remittances in Paraguay from Argentina, two countries with different development levels, which are carrying forward an economic integration project in the Southern Common Market. It describes in detail the remittances on amounts, periodicity and channels of transmission (whether formal or informal), it examines the use of remittances , whether the funds are destined to savings and investment or for consumption. Tentatively we find that a significant proportion of households with the lowest income, can escape poverty thanks to the receipt of remittances and they use those funds for consumption, education and health. They receive remittances mainly from Argentina, the middle class particularly from Spain. In short, households with migrants in Argentina are comparatively poorer and therefore remittances have greater impact there.