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Remittances and the Dutch Disease: Evidence from the Republic of Moldova

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  • Katsuya Ito

Abstract

This paper analyzes the linkage between exports, real effective exchange rates, and workers’ remittances in the Republic of Moldova based on impulse response functions through a vector autoregressive model. We find that an inflow of remittances leads to an appreciation of real exchange rate and a decline of exports, but the magnitude is small. Another finding is that the exchange rate appreciation does not affect remittance transfers for the first three-quarters.

Suggested Citation

  • Katsuya Ito, 2017. "Remittances and the Dutch Disease: Evidence from the Republic of Moldova," International Economic Journal, Taylor & Francis Journals, vol. 31(3), pages 462-469, July.
    • Handle: RePEc:taf:intecj:v:31:y:2017:i:3:p:462-469
    DOI: 10.1080/10168737.2017.1326514
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    Cited by:

    1. Gor A. Khachatryan & Aleksandr Grigoryan, 2020. "Export Growth Dynamics and Real Exchange Rate: Evidence from Armenia," International Economic Journal, Taylor & Francis Journals, vol. 34(3), pages 493-509, July.
    2. Emery, Tom & Koops, Judith C., 2021. "The Impact of COVID-19 on Fertility behaviour and Intentions in the Republic of Moldova," SocArXiv fcqd9, Center for Open Science.
    3. Zhang, Wei-Wei & Sadiq, Ramla & Khan, Tahseen Mohsan & Khan, Muhammad Mohsan, 2021. "Policy implications of remittances, trade liberalization and Dutch disease – A comparative analysis based on income categorization," Resources Policy, Elsevier, vol. 72(C).
    4. Burçak Polat & Antonio Rodríguez Andrés, 2019. "Do emigrants’ remittances cause Dutch disease? A developing countries case study," The Economic and Labour Relations Review, , vol. 30(1), pages 59-76, March.

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