International business cycles and remittance flows
AbstractIn this paper, we study the macroeconomic determinants of remittance flows. We place particular attention to fluctuations in remittance flows over the international business cycles. Estimating a dynamic panel data model using the system-GMM method over the period 1970–2007, we document that remittance inflows decrease with home country volatility. Contrarily, remittance inflows increase with the volatility in host countries, especially for middle-income countries. Lower interest rates in host countries lead to larger remittance outflows. Trade and capital account openness are the most important factors that determine both remittance inflows and outflows. We conclude that macroeconomic factors of both home and host countries are important for understanding remittance flows.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Macroeconomics.
Volume (Year): 13 (2013)
Issue (Month): 1 (September)
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Web page: http://www.degruyter.com
Other versions of this item:
- Mallick, Debdulal & Cooray, Arusha, 2010. "International Business Cycles and Remittance Flows," MPRA Paper 25675, University Library of Munich, Germany.
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
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