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Remittances, exchange rate regimes, and the Dutch disease: a panel data analysis

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  • Pablo A. Acosta
  • Emmanuel K. K. Lartey
  • Federico S. Mandelman

Abstract

Using disaggregated sectorial data, this study shows that rising levels of remittances have spending effects that lead to real exchange rate appreciation and resource movement effects that favor the nontradable sector at the expense of tradable goods production. These characteristics are two aspects of the phenomenon known as Dutch disease. The results further indicate that these effects operate more strongly under fixed nominal exchange rate regimes.

Suggested Citation

  • Pablo A. Acosta & Emmanuel K. K. Lartey & Federico S. Mandelman, 2008. "Remittances, exchange rate regimes, and the Dutch disease: a panel data analysis," FRB Atlanta Working Paper 2008-12, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:2008-12
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    References listed on IDEAS

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    Keywords

    Emigrant remittances; Foreign exchange rates;

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