Do Worker Remittances Reduce Output Volatility in Developing Countries?
AbstractThe theoretical and empirical effects of remittance inflows on output volatility are ambiguous. On the one hand, remittances have been remarkably stable compared to other inflows, and they seem to be compensatory in nature, rising when the home country’s economy suffers a downturn. On the other hand, the labor supply effects induced by altruistic remittances could cause the output effects associated with technology shocks to be magnified. Based on a sample of 70 remittance-recipient countries, we find that remittances have a negative effect on output growth volatility, thereby supporting the notion that remittance flows are a stabilizing influence on output.
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Bibliographic InfoArticle provided by De Gruyter in its journal Journal of Globalization and Development.
Volume (Year): 3 (2012)
Issue (Month): 1 (June)
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Web page: http://www.degruyter.com
Other versions of this item:
- Ralph Chami & Dalia Hakura & Peter Montiel, 2010. "Do Worker Remittances Reduce Output Volatility in Developing Countries?," Center for Development Economics 2010-01, Department of Economics, Williams College.
- Ralph Chami & Dalia Hakura & Peter Montiel, 2010. "Do Worker Remittances Reduce Output Volatility in Developing Countries?," Department of Economics Working Papers 2010-17, Department of Economics, Williams College.
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
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