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Remittances in Latin America: Trends and Persistence

Author

Listed:
  • Guglielmo Maria Caporale
  • Luis Alberiko Gil-Alana
  • Karen Roxana Quinatoa Narváez

Abstract

This paper analyses remittances in fifteeen Latin American countries (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Panama, Dominican Republic, Uruguay and Venezuela) by applying fractional integration methods to World Bank annual data. The start year varies from 1970 in Colombia and Venezuela to 2003 in Uruguay, while the end year is 2022 in all cases except Venezuela, for which it is 2016. The chosen approach provides evidence on trends and persistence in the series under investigation. The results indicate that the effects of shocks to remittances are transitory only in Guatemala and Honduras. This might reflect the rather stable employment and wages of migrant workers from these two countries residing in the US, cultural factors, and the relatively small values and/or low volatility of remittances to these two countries.

Suggested Citation

  • Guglielmo Maria Caporale & Luis Alberiko Gil-Alana & Karen Roxana Quinatoa Narváez, 2024. "Remittances in Latin America: Trends and Persistence," CESifo Working Paper Series 11505, CESifo.
    • Handle: RePEc:ces:ceswps:_11505
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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