IDEAS home Printed from https://ideas.repec.org/a/mig/journl/v7y2010i2p214-223.html
   My bibliography  Save this article

CASE STUDY: The determinants of remittances to India

Author

Listed:
  • Poonam Gupta

    () (Indian Council for Research on International Economic Relations, New Delhi, India.)

Abstract

This paper analyses the macroeconomic determinants of remittances to India and assesses the impact of the current global slowdown on these flows. The paper shows that remittances exhibit a strong trend, whereby they have increased at a robust rate of 10 per cent a year since 1992. The movement of remittances is limited around the trend and traditionally has not been affected by the domestic or external macroeconomic variables. This pattern has changed since 2000, when the remittances have responded positively to the domestic interest rates and the Indian stock market; and negatively to the external interest rates. Looking ahead, a slowdown in the economic growth rate in advanced economies is unlikely to reduce the flow of remittances to India in the short term; but a prolonged slowdown, if it significantly reverses the migration of Indians, can reduce the trend growth rate.

Suggested Citation

  • Poonam Gupta, 2010. "CASE STUDY: The determinants of remittances to India," Migration Letters, Transnational Press London, UK, vol. 7(2), pages 214-223, October.
  • Handle: RePEc:mig:journl:v:7:y:2010:i:2:p:214-223
    as

    Download full text from publisher

    File URL: http://www.tplondon.com/journal/index.php/ml/article/viewFile/192/175
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2010. "Outlook for Remittance Flows 2010-11 : Remittance Flows to Developing Countries Remained Resilient in 2009, Expected to Recover During 2010-11," World Bank Other Operational Studies 10931, The World Bank.
    2. Raju Jan Singh & Markus Haacker & Kyung-woo Lee & Maëlan Le Goff, 2011. "Determinants and Macroeconomic Impact of Remittances in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), pages 312-340.
    3. Giuliano, Paola & Ruiz-Arranz, Marta, 2009. "Remittances, financial development, and growth," Journal of Development Economics, Elsevier, pages 144-152.
    4. Parsons, Christopher R. & Skeldon, Ronald & Walmsley, Terrie L. & Winters, L. Alan, 2007. "Quantifying international migration : a database of bilateral migrant stocks," Policy Research Working Paper Series 4165, The World Bank.
    5. Carlos Vargas-Silva & Peng Huang, 2006. "Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 81-99.
    6. Nicholas P. Glytsos, 1997. "Remitting Behaviour of "Temporary" and "Permanent" Migrants: The Case of Greeks in Germany and Australia," LABOUR, CEIS, vol. 11(3), pages 409-435, November.
    7. Faini, Riccardo, 2006. "Remittances and the Brain Drain," IZA Discussion Papers 2155, Institute for the Study of Labor (IZA).
    8. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Migration and Remittance Trends 2009 : A Better-Than-Expected Outcome So Far, But Significant Risks Ahead," World Bank Other Operational Studies 10958, The World Bank.
    9. Sanket Mohapatra & George Joseph & Dilip Ratha, 2012. "Remittances and natural disasters: ex-post response and contribution to ex-ante preparedness," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 14(3), pages 365-387, June.
    10. Bugamelli, Matteo & Paternò, Francesco, 2009. "Do Workers' Remittances Reduce the Probability of Current Account Reversals?," World Development, Elsevier, vol. 37(12), pages 1821-1838, December.
    11. El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
    12. Rolando Avendaño & Norbert Gaillard & Sebastián Nieto Parra, 2009. "Are Workers' Remittances Relevant for Credit Rating Agencies?," OECD Development Centre Working Papers 282, OECD Publishing.
    13. David J. McKenzie & Nicole Hildebrandt, 2005. "The Effects of Migration on Child Health in Mexico," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2005), pages 257-289, August.
    14. Catalina Amuedo-Dorantes & Susan Pozo, 2011. "New evidence on the role of remittances on healthcare expenditures by Mexican households," Review of Economics of the Household, Springer, vol. 9(1), pages 69-98, March.
    15. John Gibson & David McKenzie & Halahingano Rohorua, 2006. "How Cost Elastic are Remittances? Estimates from Tongan Migrants in New Zealand," Working Papers in Economics 06/02, University of Waikato.
    16. Freund, Caroline & Spatafora, Nikola, 2008. "Remittances, transaction costs, and informality," Journal of Development Economics, Elsevier, vol. 86(2), pages 356-366, June.
    17. Dilip Ratha, 2006. "Leveraging remittances for development," Proceedings, Federal Reserve Bank of Dallas, pages 173-185.
    18. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," World Bank Economic Review, World Bank Group, vol. 21(2), pages 219-248, May.
    19. Merkle, Lucie & Zimmermann, Klaus F., 1992. "Savings, remittances, and return migration," Economics Letters, Elsevier, vol. 38(1), pages 77-81, January.
    20. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Other Operational Studies 10975, The World Bank.
    21. Adolfo Barajas & Ralph Chami & Connel Fullenkamp & Anjali Garg, 2010. "The Global Financial Crisis and Workers' Remittances to Africa: What's the Damage?," Journal of African Development, African Finance and Economic Association, pages 73-96.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:mig:remrev:v:2:y:2017:i:1:p:31-45 is not listed on IDEAS
    2. Ibrahim Sirkeci & Jeffrey H. Cohen & Dilip Ratha, 2012. "Migration and Remittances during the Global Financial Crisis and Beyond," World Bank Publications, The World Bank, number 13092.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mig:journl:v:7:y:2010:i:2:p:214-223. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (I. Sirkeci). General contact details of provider: http://www.tplondon.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.