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Aid and remittances: their stabilizing impact compared

Author

Listed:
  • Patrick GUILLAUMONT

    (Ferdi)

  • Maëlan LE GOFF

    (CEPII)

Abstract

This paper presents a comparative analysis of the stabilizing effect of official development assistance (ODA) and migrant remittances. First, at the country level and for each kind of flows it assesses their stabilizing impact with regard to the fluctuation of exports, as distinct from their countercyclical character. Most often than the opposite, both kinds of flows appear stabilizing. Second, on a cross-country basis it appears that both aid and remittances dampen the growth volatility. While at the country level, remittances appear to dampen the instability of exports more often than aid does so, on a cross-country basis, aid more than remittances lowers growth volatility.

Suggested Citation

  • Patrick GUILLAUMONT & Maëlan LE GOFF, 2010. "Aid and remittances: their stabilizing impact compared," Working Papers P12, FERDI.
  • Handle: RePEc:fdi:wpaper:655
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    Cited by:

    1. Patrick Guillaumont & Laurent Wagner, 2014. "Aid Effectiveness for Poverty Reduction: Lessons from Cross‑country Analyses, with a Special Focus on Vulnerable Countries," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 217-261.
    2. Gnangnon, Sèna Kimm, 2022. "The Least Developed Countries' Services Waiver and the Stability of Least Developed Countries' Services Exports," EconStor Preprints 260587, ZBW - Leibniz Information Centre for Economics.
    3. Lisa Chauvet & Marin Ferry & Patrick Guillaumont & Sylviane Guillaumont Jeanneney & Sampawende J.-A. Tapsoba & Laurent Wagner, 2019. "Volatility widens inequality. Could aid and remittances help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 71-104, February.
    4. Rohen d'AIGLEPIERRE et Laurent Wagner, 2017. "Macroeconomic Crisis, Primary Education and Aid Effectiveness," Working Paper def86062-d26a-4379-af8d-c, Agence française de développement.
    5. Bouoiyour, Jamal & Miftah, Amal & Selmi, Refk, 2014. "Do Financial Flows raise or reduce Economic growth Volatility? Some Lessons from Moroccan case," MPRA Paper 57258, University Library of Munich, Germany.
    6. Edmore MAHEMBE & Nicholas M. ODHIAMBO, 2017. "On The Link Between Foreign Aid And Poverty Reduction In Developing Countries," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 26(2), pages 113-128.
    7. Patrick Guillaumont & Phu Nguyen‐Van & Thi Kim Cuong Pham & Laurent Wagner, 2023. "Equal opportunity and poverty reduction: How should aid be allocated?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 550-607, February.

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    More about this item

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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