Impact of Naturalization and Informal Channels on Remittances to North Africa: focus on Algeria

Abstract

International remittances represent an engine of growth for developing economies. These transfers play a major role in the incomes of low- or middle-growth countries, as classified by Bretton Woods system. They contribute significantly to diminishing poverty and strengthening the resilience of beneficiaries in their country of origin. This paper aims to examine the trends and challenges associated with international remittances to North Africa, highlighting the specific case of Algeria. The issue relates to the potential effects of the naturalisation of migrants on remittances inflows. To answer this question, we analyse: i) the impact of the naturalisation of migrants, coupled by informal channel on remittances. ii) the profile of beneficiaries of remittances in North Africa and the level of trust to banking system, and iii) the recent trends of transfers to North Africa. Our findings reveal that as migrants gain citizenship, the less they make transfers to their country of origin, and that informal channel hides an unmeasured number of remittances.