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The lag effect of economic policy uncertainty on remittances

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  • Constant L. Yayi

Abstract

We examine the effects of economic policy uncertainty (EPU) on remittances paid by international migrants using a sample of 14 developed countries over the period spanning from 1997 to 2020. Contrary to the intuition, our results indicate that EPU has no contemporaneous effect but rather a lagged positive and significant effect on remittances paid. More specifically, we find that remittances paid per capita increase by 0.11–0.13% in the year following the period of uncertainty. These findings confirm the resiliency of remittances sent by international migrants from developed to developing countries during times of uncertainties.

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  • Constant L. Yayi, 2023. "The lag effect of economic policy uncertainty on remittances," Applied Economics Letters, Taylor & Francis Journals, vol. 30(14), pages 1960-1965, August.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:14:p:1960-1965
    DOI: 10.1080/13504851.2022.2086681
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