Remittances and the real effective exchange rate
AbstractWe examine the long-run relationship between remittances and the real exchange rate for less developed countries using a panel cointegration approach. We employ an innovative method for the measurement of the multilateral real effective exchange rate and we focus on high remittance economies. We find a small inelastic, but significant, long-run relationship which confirms a “Dutch disease” type effect. Short-run confirmation is given by a panel error correction model. Potential asymmetries in this relationship are explored using quantile regression analysis.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40084.
Date of creation: 01 Jun 2012
Date of revision:
Remittances; Real Effective Exchange Rate; Panel cointegration; Panel error correction; Quantile regression;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F0 - International Economics - - General
- F1 - International Economics - - Trade
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
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