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When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up?

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  • Fida Karam

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, I run a computable general equilibrium (CGE) model of the Moroccan economy to investigate the transmission channels through which remittances affect households and sectors. I give a particular attention to the investment of remittances in the real estate sector, by allowing a segmentation of the savings market. To begin with, I assess the negative impact of immigration restrictive policies and permanent migration on the future evolution of remittances. Then I ask what would be the appropriate policies to take the maximum profit from current flows. It turns out that channelling investment from real estate to productive sectors is unexpectedly harmful in terms of growth and welfare. Positive effects stem only from government ability to attract investors through an improvement in the country risk premium, and private efforts to reduce international transfer costs.

Suggested Citation

  • Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up?," Working Papers hal-00304885, HAL.
    • Handle: RePEc:hal:wpaper:hal-00304885
    Note: View the original document on HAL open archive server: https://hal.science/hal-00304885v2
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    References listed on IDEAS

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    Cited by:

    1. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.

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    Keywords

    Remittances; Sequential Dynamics; Computable General Equilibrium Model; Migration; Remittances.;
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