This study analyzes the impact of remittances as seen in household survey data from three small rural communities. OLS and multivariate anova regressions were used to analyze household survey data collected in Cumbe and Gualaceo (Ecuador) and in Ciudad Romero (El Salvador). The results contradict the findings of some studies concluding that in many countries remittances acted as “compensation for poor economic performance” rather than capital promoting economic development.

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