Risk Sharing in the Middle East and North Africa: The Role of Remittances and Factor Incomes
This paper investigates welfare gains and channels of risk sharing among 14 Middle Eastern and North African (MENA) countries, including the oil-rich Gulf region and the resource scarce economies such as Egypt, Morocco and Tunisia. The results show that, for the 1992-2009 period, the overall welfare gain across MENA countries is higher than those documented for the Organization for Economic Cooperation and Development (OECD) nations. In the Gulf region, the amount of factor income smoothing does not differ considerably when output shocks are longer-lasting than transitory; whereas the amount smoothed by savings increases remarkably when shocks are longer-lasting. By contrast, both factor income flows and international transfers respond more to permanent shocks rather than to transitory shocks in the non-oil MENA countries. The results also show that a significant portion of shocks is smoothed via remittance transfers in the economically less developed MENA countries, but not in the oil-rich Gulf and OECD countries. Finally, for the overall MENA region, a large part of the shock remains unsmoothed, suggesting that more market integration is needed to remedy the weak link of incomplete risk-sharing.
|Date of creation:||Aug 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: http://cama.crawford.anu.edu.auEmail:
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.:
- Matteo Bugamelli & Francesco Paternò, 2006.
"Do Workers' Remittances Reduce the Probability of Current Account Reversals?,"
CEP Discussion Papers
dp0714, Centre for Economic Performance, LSE.
- 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 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.
- Antonio David, 2010.
"How Do International Financial Flows to Developing Countries Respond to Natural Disasters?,"
IMF Working Papers
10/166, International Monetary Fund.
- David Antonio C., 2011. "How do International Financial Flows to Developing Countries Respond to Natural Disasters?," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-38, December.
- Daron Acemoglu & Simon Johnson & James Robinson & Yunyong Thaicharoen, 2002.
"Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth,"
NBER Working Papers
9124, National Bureau of Economic Research, Inc.
- Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January.
- Acemoglu, Daron & Johnson, Simon & Robinson, James A & Thaicharoen, Yunyong, 2002. "Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth," CEPR Discussion Papers 3575, C.E.P.R. Discussion Papers.
- Sascha O. Becker & Mathias Hoffmann, 2003.
"Intra-and International Risk-Sharing in the Short Run and the Long Run,"
CESifo Working Paper Series
1111, CESifo Group Munich.
- Becker, Sascha O. & Hoffmann, Mathias, 2006. "Intra- and international risk-sharing in the short run and the long run," European Economic Review, Elsevier, vol. 50(3), pages 777-806, April.
- Backus, David K & Kehoe, Patrick J & Kydland, Finn E, 1992.
"International Real Business Cycles,"
Journal of Political Economy,
University of Chicago Press, vol. 100(4), pages 745-75, August.
- David K. Backus & Patrick J. Kehoe & Finn E. Kydland, 1991. "International real business cycles," Staff Report 146, Federal Reserve Bank of Minneapolis.
- David K. Backus & Patrick J. Kehoe & Finn E. Kydland, 1987. "International real business cycles," Working Papers 426, Federal Reserve Bank of Minneapolis.
- Demyanyk, Yuliya & Volosovych, Vadym, 2008.
"Gains from financial integration in the European Union: Evidence for new and old members,"
Journal of International Money and Finance,
Elsevier, vol. 27(2), pages 277-294, March.
- Yuliya Demyanyk & Vadym Volosovych, 2006. "Gains from Financial Integration in the European Union: Evidence for New and Old Members," Working Papers 06009, Department of Economics, College of Business, Florida Atlantic University, revised Aug 2007.
- Yuliya Demyanyk & Vadym Volosovych, 2007. "Gains from financial integration in the European union: evidence for new and old members," Supervisory Policy Analysis Working Papers 2007-01, Federal Reserve Bank of St. Louis.
- Fratzscher, Marcel & Imbs, Jean, 2007.
"Risk sharing, finance and institutions in international portfolios,"
Working Paper Series
0826, European Central Bank.
- Fratzscher, Marcel & Imbs, Jean, 2009. "Risk sharing, finance, and institutions in international portfolios," Journal of Financial Economics, Elsevier, vol. 94(3), pages 428-447, December.
- Fratzscher, Marcel & Imbs, Jean, 2007. "Risk Sharing, Finance and Institutions in International Portfolios," CEPR Discussion Papers 6496, C.E.P.R. Discussion Papers.
- Asdrubali, Pierfederico & Sorensen, Bent E & Yosha, Oved, 1996. "Channels of Interstate Risk Sharing: United States 1963-1990," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1081-1110, November.
- Wincoop, Eric van, 1994. "Welfare gains from international risksharing," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 175-200, October.
- Carlos Fonseca Marinheiro, 2003.
"Output Smoothing in EMU and OECD: Can We Forego Government Contribution? A Risk Sharing Approach,"
CESifo Working Paper Series
1051, CESifo Group Munich.
- Carlos Marinheiro, 2003. "Output Smoothing in EMU and OECD: Can We Forego Government Contribution? A risk sharing approach," GEMF Working Papers 2003-02, GEMF - Faculdade de Economia, Universidade de Coimbra.
When requesting a correction, please mention this item's handle: RePEc:een:camaaa:2012-39. 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: (Cama Admin)
If references are entirely missing, you can add them using this form.