Remittances from abroad significantly reduce poverty in developing countries.
Remittances from people working abroad are a big help to developing countries, making up a large part of their income. A study looked at how these remittances affect poverty in 77 developing countries. They found that remittances do help reduce poverty, especially in countries where they make up more than 5% of the income. This means that money sent back home by people working abroad can make a real difference in lifting people out of poverty in developing countries.