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Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions

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Listed author(s):
  • Carlos Vargas-Silva
  • Peng Huang

Abstract

This study examines the determinants of worker's remittances. Variance decompositions, impulse response functions and Granger causality tests derived from a vector error correction model are used to test if remittances are affected by the macroeconomic conditions of the host (remittance sending) or home (remittance receiving) country. Data from Brazil, Colombia, the Dominican Republic, El Salvador, Mexico and the US are used. The results indicate that remittances respond more to changes in the macroeconomic conditions of the host country, than to changes in the macroeconomic conditions of the home country.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190500525779
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Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 15 (2006)
Issue (Month): 1 ()
Pages: 81-99

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Handle: RePEc:taf:jitecd:v:15:y:2006:i:1:p:81-99
DOI: 10.1080/09638190500525779
Contact details of provider: Web page: http://www.tandfonline.com/RJTE20

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Keywords: Remittances; migration; international flows; error correction models;

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Find related papers by JEL classification:
  • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
  • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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  15. Amuedo-Dorantes, Catalina & Pozo, Susan, 2004. "Workers' Remittances and the Real Exchange Rate: A Paradox of Gifts," World Development, Elsevier, vol. 32(8), pages 1407-1417, August.
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