Remittances, financing constraints and growth volatility : Do remittances reduce growth volatility?
ثبت نشده
چکیده
This paper empirically studies the effect of remittances on growth volatility. Using a panel of 60 countries over the period 1980-2004 the results suggest that remittances reduce growth volatility in environment with low level of financial development. This stabilizing effect of remittances is nonlinear i.e. it decreases with the level of remittances. The results also suggest that the dampening effect of remittances on the propagation of shocks depends on the nature of shock (real or monetary). More precisely, by using the volatility of terms of trade and inflation to proxy for real and monetary volatility, respectively, the results suggest that remittances dampen the effect of terms of trade volatility, but do not change the effect of inflation volatility. JEL Classification: F22, F24, O11.
منابع مشابه
The Remittance Inflows’ Impact on Savings in the Serbian Economy
Remittance inflows represent one of the most significant sources of foreign funding for most developing countries. These funds have also proven to be one of the most stable sources of external financing for developing countries during the past few decades and in the period of the last global crisis. They are much less responsive to economic cycles and economic shocks than foreign direct investm...
متن کاملRemittances and Income Smoothing
Remittances and Income Smoothing Due to inadequate savings and binding borrowing constraints, income volatility can make households in developing countries particularly susceptible to economic hardship. We examine the role of remittances in either alleviating or increasing household income volatility using Mexican household level data over the 2000 through 2008 period. We correct for reverse ca...
متن کاملDo Workers\' Remittances Matter for the Egyptian Economy?
Workers’ remittances constitute one of the most important sources of external finance for many developing countries. Although it shows a decreasing trend in recent years, Egypt after 1970s with her regular and massive labor migration to abroad has been still one of the gainer countries on remittances across the world. Empirical studies that implemented for various countries reveal workers’ ...
متن کاملExchange Rate Volatility and Foreign Capital Inflows in Nigeria (1990-2016), Cointegration, DOLS and Granger Causality Approach
The aim of this study is to examine the nexus between exchange rate volatility and foreign capital inflows in Nigeria. The results from the past empirical studies about this subject matter have been controversial, which has created a gap in the literature. The study extracted data from CBN Statistical Bulletin and UNCTAD investment report from 1990-2016. Consequently, the findings that emerged ...
متن کاملThe Impact of Aid on Recipient Behavior: A Micro-Level Dynamic Analysis of Remittances, Schooling, Work, Consumption, Investment and Social Mobility in Nicaragua
Remittances are a very important source of income for many Nicaraguan families. More than 40% of all households receive remittances that on average amount to 12-15% of total household income in these households. More than 30% of these households receive remittances at least monthly, implying that it is a relatively stable source of income. This paper shows that remittances do tend to reduce the...
متن کامل