IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-981-16-7818-9_14.html
   My bibliography  Save this book chapter

An Econometric Approach Towards Exploring the Impact of Workers Remittances on Inflation: Empirical Evidence from India

In: Achieving $5 Trillion Economy of India

Author

Listed:
  • Vaishali Jain

    (Christ (Deemed University))

  • Monika Mathur

    (Manipal University Jaipur)

Abstract

This paper attempts to study short and long run impact of increased worker’s remittances on general price level. It uses the real GDP growth, real effective exchange rate (REER), M3 (broad money), fiscal deficit to gauge the impact of foreign remittances on inflation. The study makes use of VAR/VECM framework to gauge the impact of worker’s remittances on inflation. Inflation is measured in terms of CPI and WPI, real income or GDP at constant prices is taken as a measure of GDP growth, REER is used for exchange rates and M3 is taken as a proxy for money supply. Monthly data of all these variables has been taken from Bloomberg and World Bank data base. The findings provide important insights into the nature of association between remittances and inflation suggesting causality between inflation, remittances, real GDP, real effective exchange rates and money supply due to increased worker’s remittances. The findings have policy implications for decisions to channelize worker’s remittances in a way to increase real GDP growth and money supply while at the same time not causing the general price levels to soar. The present study focuses on how increased (decreased) worker’s remittances is leading to increase (decrease) in general price levels in India.

Suggested Citation

  • Vaishali Jain & Monika Mathur, 2022. "An Econometric Approach Towards Exploring the Impact of Workers Remittances on Inflation: Empirical Evidence from India," Springer Proceedings in Business and Economics, in: Arti Chandani & Rajiv Divekar & J. K. Nayak (ed.), Achieving $5 Trillion Economy of India, pages 293-303, Springer.
    • Handle: RePEc:spr:prbchp:978-981-16-7818-9_14
    DOI: 10.1007/978-981-16-7818-9_14
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:prbchp:978-981-16-7818-9_14. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.