The transistor's emitter and collector currents are almost identical and limited only by the transistor's alpha which is just under 1 do to the loss of current through the base. Alpha = beta/(1+beta) so higher current gain yields an alpha closer to 1.
With the base tied to ground, the emitter will be 1 Vbe (about 0.6 volts) lower or higher depending on whether an NPN or PNP is used so the voltage across the emitter resistor is the input voltage - Vbe. Since the collector current is equal to the emitter current minus the base current , the current through the resistor shows up at the collector and it is insensitive to changes in collector voltage.
Vbe has a temperature coefficient of about 2mV/C which may add an undesirable error in some applications. To fix this, a diode or another transistor can be used to offset the base from ground by the same Vbe so now the emitter is at ground potential and the temperature coefficient is compensated for.
The circuit uses this voltage to current circuit because the LM13700 OTA wants an input current to control transconductance.