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Macroeconomic Determinants of Workers’ Remittances: Host vs. Home Country’s Economic Conditions

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Author Info

  • Carlos Vargas-Silva

    (Western Michigan University)

  • Peng Huang

    (Western Michigan Univeristy)

Abstract

This study examines the determinants of worker’s remittances. Variance decompositions, impulse response functions and Granger causality tests derived from a vector error correction model are used to test if remittances are affected by the macroeconomic conditions of the host (remittance sending) or home (remittance receiving) country. Data from Brazil, Colombia, the Dominican Republic, El Salvador, Mexico and the U.S. are used. The results indicate that remittances respond more to changes in the macroeconomic conditions of the host country, than to changes in the macroeconomic conditions of the home country.

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File URL: http://128.118.178.162/eps/if/papers/0507/0507007.pdf
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Bibliographic Info

Paper provided by EconWPA in its series International Finance with number 0507007.

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Length: 27 pages
Date of creation: 26 Jul 2005
Date of revision: 29 Jul 2005
Handle: RePEc:wpa:wuwpif:0507007

Note: Type of Document - pdf; pages: 27
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Web page: http://128.118.178.162

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Keywords: Remittances; Exchange Rates; Migration;

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