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When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?

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  • Karam Fida

    (Gulf University for Science and Technology)

Abstract

This paper builds a dynamic computable general equilibrium model of the Moroccan economy that investigates the linkages that transmit the influence of remittances to households and economic sectors. The model shows that the linkage between the real estate sector and other sectors in a general equilibrium context gives interesting results. Given that the real estate sector uses intermediary inputs from other sectors, a drop of remittances will negatively affect the overall economy in contrast to the little impact such a drop will have in partial equilibrium. Hence, the channeling of investment from real estate to productive sectors is unexpectedly harmful. Positive effects arise only from an improvement in the country risk premium and from a reduction of international transfer costs.

Suggested Citation

  • Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    • Handle: RePEc:bpj:rmeecf:v:6:y:2010:i:1:n:1
    DOI: 10.2202/1475-3693.1226
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    Cited by:

    1. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    2. repec:dau:papers:123456789/14850 is not listed on IDEAS
    3. Anda David & Mohamed Ali Marouani, 2015. "Migration and Employment Interactions in a Crisis Context: the case of Tunisia," Working Papers 20150007, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    4. repec:dau:papers:123456789/14987 is not listed on IDEAS
    5. Fida Karam, 2011. "Trade Liberalization and the Skill Composition of Migrant Flows: the Case of Morocco," Working Papers 595, Economic Research Forum, revised 07 Jan 2011.

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    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • 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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