In his article ‘Migrant Remittaces’, Dean Yang focuses on the remittances that are directed to the countries that are developing by the migrants who stay in other places. Yang outlines that impact of the migrant remittances and the driving force behind their control and use. He also indicates some of the unique features that these remittances exhibit. Yang conducts research of the effects of reduction of transaction fees that is attached to these remittances. At the center of focus for Yang are the microeconomic dynamics and trends that are associated with the migrant remittances.

According to Yang, most people think of international financial flows as aspects that affect direct foreign investment of the developing countries. This includes the financial transactions that involve governments, firms and big financial institutions on the international arena. In the recent years, migrant remittances have exceeded the amount of finances that are involved in official business transactions. The magnitude of these remittances are almost matching the finances that are involved in direct foreign investment endeavors. The growth rate of the migrant remittances is higher than the growth rate of the finances that are involved in direct foreign investment. Yang also notes that the rate is higher that the development assistance that is provided to the developing countries. This growth has attracted a lot of attention from both public and private sectors across the developing countries.

The main reason behind the sending of these remittances is to increase the spending power and muscle in the recipients of these remittances. These remittances act as financial shock absorbers to the recipients. Yang indicates that some of these remittances are constructively used as capital for small enterprise business ventures. These remittances also serve various financial purposes that include appreciation, insurance and payment of loans. Some of the aspects that cause the variance in the motivating factors behind these remittances include some unobserved factors that are evident in the recipient households. This variance also exists because of the varying proportions of remittances that different households receive. This also has a different effect on the consumption and entrepreneurial ability in different household.

Yang contends that most of these migrants tend to look for ways of acquiring full control of the remittances that they send. This is through trying to influence decisions that are related to the use of these remittances. Some of these remittances are accumulated and deposited in accounts belonging to these migrants in their home countries. This enables these migrants to gain control over these finances and acquire financial insurance. Some of this control enables the senders to ensure that the money is put into effective use and in an accountable manner.

Over the years, sending of remittances has become more effective. This trend is also likely to increase. This is because of various factors. This includes the significant reduction of the remittance transaction fees. This is because of the increase in the number of firms that effect the transfer of these funds. The high rate of competition has led to a significant decline of the fees that is associated. Efficiency in the transfer of the funds has also increased significantly. This is evident through the reduction of the processing periods for these funds.

In conclusion, migrant remittances is associated with money that is sent by migrants to their home countries. This money is usually sent to family and friends. Through a research conducted by Yang, the flow of these funds follows a specific orientation. This is characterized by flowing from developed to developing countries in the globe. The development surrounding the migrant remittance industry has a certain assurance of increasing the innovation levels across different financial institutions.