Gulf migration and its economic impact - The Kerala experience

Inflow of large amount of Gulf remittances and its spending has resulted in unprecedented economic changes since mid-1970s in poor and industrially ba ckward economy of Kerala. The Gulf migration has helped the migrant househo lds to attain higher levels of income, consumption, and acquisition of asse ts, resulting in overall reduction of poverty in Kerala. But, on the other hand, the Gulf remittances have also pushed up prices of land, construction material, consumer foods and charges on health, education and transport, a dversely affecting non-migrant households belonging to poor, middle class a nd fixed income groups.