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Another Consequence of the Economic Crisis: A Decrease in Migrants’ Remittances

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  • Isabel Ruiz

    (Department of Economics and International Business, Sam Houston State University)

  • Carlos Vargas-Silva

    (International Migration Institute, University of Oxford)

Abstract

The effects of the current global economic crisis are widespread. The economic downturn has affected large sectors of the population in developed and developing countries and international immigrants have not been the exception. This paper documents the recent slowdown in workers’ remittances, the money that international immigrants send to their countries of origin. Current data indicates that remittance flows have decreased for all regions of the world. Latin America stands out by reporting an almost zero percent growth rate of remittances for 2008. Among Latin American countries, Mexico (the largest recipient of remittances in the region in terms of volume) seems to be the most affected with a decrease of more than US$900 million between 2007 and 2008. This article also presents evidence of the impact of some of the factors associated with the current economic crisis on remittances flows. The results indicate that there is a strong link between housing activity in the United States and remittances flows.

Suggested Citation

  • Isabel Ruiz & Carlos Vargas-Silva, 2009. "Another Consequence of the Economic Crisis: A Decrease in Migrants’ Remittances," Working Papers 0907, Sam Houston State University, Department of Economics and International Business.
    • Handle: RePEc:shs:wpaper:0907
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    References listed on IDEAS

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    2. Escamilla-Guerrero, David & López-Alonso, Moramay, 2023. "Migrant Self-Selection and Random Shocks: Evidence from the Panic of 1907," The Journal of Economic History, Cambridge University Press, vol. 83(1), pages 45-85, March.
    3. Razmi, Fatemeh & M., Azali & Chin, Lee & Habibullah, Muzafar Shah, 2015. "The effects of oil price and US economy on Thailand's macroeconomy: The role of monetary transmission mechanism," MPRA Paper 69096, University Library of Munich, Germany.
    4. Sanket Mohapatra & Dilip Ratha, 2010. "Forecasting migrant remittances during the global financial crisis," Migration Letters, Migration Letters, vol. 7(2), pages 203-213, October.
    5. Barajas, Adolfo & Chami, Ralph & Ebeke, Christian & Oeking, Anne, 2018. "What's different about monetary policy transmission in remittance-dependent countries?," Journal of Development Economics, Elsevier, vol. 134(C), pages 272-288.
    6. Díaz, Violeta & Soydemir, Gökçe, 2013. "Regional foreclosures and Mexican remittances: Evidence from the housing market crisis," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 74-86.
    7. Emeka Okoro Akpa & Segun Subair Awode & Andy Titus Okwu & Isiaq Olasunkanmi Oseni, 2020. "The Global Financial Crisis (GFC) and Remittances Received in Africa: Any Lessons for Covid-19?," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 18(2), pages 217-239.
    8. Giacomo Oddo & Maurizio Magnani & Riccardo Settimo & Simonetta Zappa, 2016. "Remittances of foreign workers in Italy: an estimation of invisible flows in the "informal channel"," Questioni di Economia e Finanza (Occasional Papers) 332, Bank of Italy, Economic Research and International Relations Area.
    9. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications - Books, The World Bank Group, number 13092, December.

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