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Asymmetric real exchange rates and poverty: The role of remittances

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  • Apergis, Nicholas
  • Cooray, Arusha

Abstract

This paper explores the asymmetric effect of real exchange rate changes on poverty through the remittance channel for a panel of 99 countries, spanning the period 1980–2015. Considering a threshold partial adjustment modelling approach, the results document that real exchange rate depreciations exert a stronger positive effect on poverty through remittances. The results are expected to be of substantial importance in the case of emerging and developing countries in designing exchange rate and inflation policies that affect the poverty levels of their population through the mechanism of remittances.

Suggested Citation

  • Apergis, Nicholas & Cooray, Arusha, 2018. "Asymmetric real exchange rates and poverty: The role of remittances," Emerging Markets Review, Elsevier, vol. 35(C), pages 111-119.
    • Handle: RePEc:eee:ememar:v:35:y:2018:i:c:p:111-119
    DOI: 10.1016/j.ememar.2018.02.001
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    Cited by:

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    4. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.

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    More about this item

    Keywords

    Real exchange rates; Remittances; Poverty; Asymmetric effects;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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