Remittances and their Response to Portfolio Variables
Using a recent Spanish database on immigrants from all across the globe, we show that remittances respond to differences in macroeconomic conditions at home and abroad. This behavior suggests that immigrants are sophisticated economic optimizers who take advantage of differential returns when accumulating assets. Immigrants remit more when per capita GDP growth rates at home are greater than in Spain, when the home-host real interest-rate differential increases, and when real exchange-rate uncertainty is higher. These patterns differ with ownership of home country assets and with the area of the globe from which immigrants originate, whether it is Africa, the Americas, Europe or Asia. The response of remittances to cross-country differences in portfolio variables suggests that remittances may not be counter-cyclical as often claimed. Hence, paradoxically, while remittances may promote consumption-smoothing at the individual or household level, remittances cannot be relied upon to shore up migrant-sending economies in times of need.
|Date of creation:||Sep 2010|
|Contact details of provider:|| Postal: Drayton House, 30 Gordon Street, London WC1H 0AX|
Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adams Jr., Richard H. & Cuecuecha, Alfredo, 2010.
"Remittances, Household Expenditure and Investment in Guatemala,"
Elsevier, vol. 38(11), pages 1626-1641, November.
- Adams, Richard H. Jr., 2005. "Remittances, household expenditure and investment in Guatemala," Policy Research Working Paper Series 3532, The World Bank.
- Bugamelli, Matteo & Paternò, Francesco, 2009. "Do Workers' Remittances Reduce the Probability of Current Account Reversals?," World Development, Elsevier, vol. 37(12), pages 1821-1838, December.
- Bugamelli, Matteo & Paterno, Francesco, 2005. "Do workers'remittances reduce the probability of current account reversals ?," Policy Research Working Paper Series 3766, The World Bank.
- Matteo Bugamelli & Francesco Paternò, 2006. "Do Workers' Remittances Reduce the Probability of Current Account Reversals?," CEP Discussion Papers dp0714, Centre for Economic Performance, LSE.
- Matteo Bugamelli & Francesco Paterno, 2006. "Do workers' remittances reduce the probability of current account reversals?," LSE Research Online Documents on Economics 19872, London School of Economics and Political Science, LSE Library.
- Amuedo-Dorantes, Catalina & Mazzolari, Francesca, 2010. "Remittances to Latin America from migrants in the United States: Assessing the impact of amnesty programs," Journal of Development Economics, Elsevier, vol. 91(2), pages 323-335, March.
- Amuedo-Dorantes, Catalina & Mazzolari, Francesca, 2009. "Remittances to Latin America from Migrants in the United States: Assessing the Impact of Amnesty Programs," IZA Discussion Papers 4318, Institute for the Study of Labor (IZA).
- Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, 04.
- Dean Yang, 2006. "International Migration, Remittances, and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," NBER Working Papers 12325, National Bureau of Economic Research, Inc.
- Matthew Higgins & Alketa Hysenbegasi & Susan Pozo, 2004. "Exchange-rate uncertainty and workers' remittances," Applied Financial Economics, Taylor & Francis Journals, vol. 14(6), pages 403-411.
- Faini, Riccardo, 1994. "Workers Remittances and the Real Exchange Rate: A Quantitative Framework," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 235-245. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:crm:wpaper:1021. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CReAM Administrator)or (Thomas Cornelissen)
If references are entirely missing, you can add them using this form.