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Investigating the Business Cycle Properties of Remittances to the Caribbean

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  • Mahalia JACKMAN

Abstract

This paper investigates the business cycle properties of remittances to four Caribbean countries – Barbados, Dominica, Jamaica and Trinidad and Tobago. To extract the cyclical components, the study uses the structural time series framework proposed by Harvey (1989). Variance decompositions and impulse response functions are then employed to analyse the underlying relationships between the variables. Results suggest that remittances to Barbados and Jamaica are significantly influenced by their domestic business cycles. Meanwhile, remittances to both Dominica and Trinidad and Tobago seem to be more affected by the US business cycle than economic developments in Dominica or Trinidad and Tobago, respectively.

Suggested Citation

  • Mahalia JACKMAN, 2014. "Investigating the Business Cycle Properties of Remittances to the Caribbean," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 87-100.
    • Handle: RePEc:eaa:aeinde:v:14:y:2014:i:1_7
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; Caribbean; Business cycles.;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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