Question

my research shows that exports are better than remittances for development. why?

Answer 1

Exports led to employment within country while as remittances help only indirectly by increasing demand. It also does not immediately increase productive capacity and supply. Exports also increase comparative advantage as ultimately new innovations, machinery, products are exported. In other words country keeps up to date with new innovations and technology. These innovation, inventions etc led to positive externalities. Also quite often in developing countries remittances make the relatives of those who remit very rich. This leds to conspicuous consumption. On the other hand exporters are even simple farmers which doesn't led to conspicuous consumption. Related to this is the fact that quite often exporters save to invest more which leds to further development.