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Remittances Inflows and Trade Policy

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  • Sena Kimm Gnangnon

    (World Trade Organization, Switzerland)

Abstract

This article explores the trade policy effect of remittances inflows, notably through three main channels, including trade imbalances, financial development and economic growth. The analysis uses a sample of 135 countries over the period 1996-2016. The findings suggest that remittances inflows induce trade policy liberalization, and the magnitude of this positive effect on trade policy liberalization is higher for less advanced countries, including poor countries than for relatively advanced countries. Furthermore, results suggest that the effect of remittances inflows on trade policy depends on countries' levels of trade imbalances, their financial development depth and their economic growth rate.

Suggested Citation

  • Sena Kimm Gnangnon, 2019. "Remittances Inflows and Trade Policy," Remittances Review, Remittances Review, vol. 4(2), pages 117-142, October.
    • Handle: RePEc:mig:remrev:v:4:y:2019:i:2:p:117-142
    DOI: 10.33182/rr.v4i2.812
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    More about this item

    Keywords

    remittances inflows; trade policy; economic growth; trade imbalance; financial development;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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