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Remittances in Small Island Developing States

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  • Catalina Amuedo-Dorantes
  • Susan Pozo
  • Carlos Vargas-Silva

Abstract

We examine how remittances relate to the exchange rate, natural disasters and foreign aid focusing on Small Island Developing States (SIDS). Using panel VAR methods, we are able to compensate for both data limitations and endogeneity issues. While remittances respond to innovations in the macroeconomic variables included in the analysis, remittances also have important impacts on these variables. Furthermore, the impact of remittances differs in SIDS economies relative to the set of all developing economies. Remittances appear to depreciate the real exchange in SIDS economies, whereas they appreciate the real exchange rate when a broader sample of economies is considered.

Suggested Citation

  • Catalina Amuedo-Dorantes & Susan Pozo & Carlos Vargas-Silva, 2010. "Remittances in Small Island Developing States," Journal of Development Studies, Taylor & Francis Journals, vol. 46(5), pages 941-960.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:5:p:941-960
    DOI: 10.1080/00220381003623863
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    1. World Bank, 2008. "The Migration and Remittances Factbook 2008," World Bank Publications, The World Bank, number 6383.
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    Cited by:

    1. Edward M Feasel & Nobuyuki Kanazawa, 2013. "Sentiment toward Trading Partners and International Trade," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(3), pages 309-327.
    2. Mbaye, Linguère Mously & Zimmermann, Klaus F., 2015. "Environmental Disasters and Migration," IZA Discussion Papers 9349, Institute for the Study of Labor (IZA).
    3. Mbaye, Linguere Mously & Zimmermann, Klaus F., 2016. "Natural Disasters and Human Mobility," International Review of Environmental and Resource Economics, now publishers, vol. 10(1), pages 37-56, November.

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