IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/123048.html

Workers' remittances and the equilibrium real exchange rate: theory and evidence

Author

Listed:
  • Barajas, Adolfo
  • Montiel, Peter
  • Chami, Ralph
  • Hakura, Dalia

Abstract

"This paper investigates the impact of workers´ remittances on equilibrium real exchange rates (ERER) in recipient economies. Using a small open economy model, it shows that standard "Dutch Disease" results of appreciation are substantially weakened or even overturned depending on: degree of openness, factor mobility between domestic sectors, and countercyclicality of remittances; the share of consumption in tradables; and the sensitivity of a country´s risk premium to remittance flows. Panel cointegration techniques on a large set of countries provide support for these analytical results, and show that ERER appreciation in response to sustained remittance flows tends to be quantitatively small."
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Barajas, Adolfo & Montiel, Peter & Chami, Ralph & Hakura, Dalia, 2011. "Workers' remittances and the equilibrium real exchange rate: theory and evidence," LSE Research Online Documents on Economics 123048, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123048
    as

    Download full text from publisher

    File URL: https://researchonline.lse.ac.uk/id/eprint/123048/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

    Statistics

    Access and download statistics

    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:ehl:lserod:123048. 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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    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.