• Display

an Eldis Resource

This document is the executive summary of a study which aims to understand the demand for and supply of the remittance services for migrant workers in China in order to recommend ways to improve the remittance services, with the ultimate goal of contributing to the improvement of the income and welfare of migrant workers and their families and to promote the overall income growth and equity in China.

The study presents a number of findings relating to market size, demand for domestic remittance services, supply of domestic remittance services and international remittances:

• the market for domestic remittances of migrant workers in China is huge and is projected to grow over the next 5 to 10 years, due to the fact that the Chinese economy is growing at a high rate (annual GDP growth is around 9 per cent) and that there remains a large surplus of labour in rural China to be shifted out of agriculture
• almost 40 percent of migrant workers have low levels of education, and this could lead to greater risk for misunderstanding about existing financial products, including remittance products
• the market for domestic remittances by migrant workers in China has been dominated by formal service providers, mainly China Post, the commercial banks, and rural credit cooperatives
• the proportion of the migrant workers who carry cash home (25 percent) is an indication of low quality and inefficiency of services provided by formal remittance service providers
• the volume of international remittances being sent between China and other countries/regions has grown quickly, following increases in overseas trade, emigration, tourism, and overseas studies.

• Full text of document
• Publisher details
• Send to a friend