The Impact of U.S. Regional Business Cycles on Remittances to Latin America
The current economic slowdown in the United States and the decline in remittance growth to some Latin American countries have intensified the interest in the relationship between these variables. We investigate whether host country conditions affect remittance outflows to Latin America, focusing on the roles of regional U.S. business cycles, geographical variation in immigrant density and sectoral factors. Using quarterly data for 1995-2008, we find that remittance flows are strongly influenced by economic conditions in the specific regions of the U.S. where migrants are clustered, as well as in the sectors especially important for immigrants' employment opportunities. The results are in sharp contrast to previous research suggesting that remittance flows are relatively insensitive to fluctuations in the aggregate U.S. business cycle. Precise estimation of these linkages is also shown to matter for gauging the sensitivity of remittances to economic conditions in the home country, and hence the extent to which remittances might buffer domestic shocks as well as transmitting external ones.
|Date of creation:||16 Feb 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
Web page: http://www.hhs.se/
More information through EDIRC
References listed on IDEAS
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.:
- James F. Hollifield & Pia M. Orrenius & Thomas Osang, 2006. "Migration, trade, and development: an overview," Proceedings, Federal Reserve Bank of Dallas, pages 3-8.
- Rapoport, Hillel & Docquier, Frédéric, 2005.
"The Economics of Migrants’ Remittances,"
IZA Discussion Papers
1531, Institute for the Study of Labor (IZA).
- Rapoport, Hillel & Docquier, Frederic, 2006. "The Economics of Migrants' Remittances," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
- Pia M. Orrenius & Jason L. Saving & Priscilla Caputo, 2005. "Why did Texas have a jobless recovery?," Monograph, Federal Reserve Bank of Dallas, number 2005wdthaj.
- Ewa Gradzka & Shaun K. Roache, 2007. "Do Remittances to Latin America Depend on the U.S. Business Cycle?," IMF Working Papers 07/273, International Monetary Fund.
- Bilin Neyapti & Kivilcim Metin-Ozcan & Osman Tuncay Aydas, 2004.
"Determinants of Workers Remittances : The Case of Turkey,"
0405, Department of Economics, Bilkent University.
- Osman Tuncay Aydas & Kivilcim Metin-Ozcan & Bilin Neyapti, 2005. "Determinants of Workers' Remittances : The Case of Turkey," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 41(3), pages 53-69, May.
- Connel Fullenkamp & Thomas F. Cosimano & Michael T. Gapen & Ralph Chami & Peter Montiel & Adolfo Barajas, 2008. "Macroeconomic Consequences of Remittances," IMF Occasional Papers 259, International Monetary Fund.
- Serdar Sayan, 2006. "Business Cycles and Workers' Remittances: How Do Migrant Workers Respond to Cyclical Movements of GDP At Home?," IMF Working Papers 06/52, International Monetary Fund.
- Carlos Vargas-Silva & Peng Huang, 2006.
"Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions,"
The Journal of International Trade & Economic Development,
Taylor & Francis Journals, vol. 15(1), pages 81-99.
- Carlos Vargas-Silva & Peng Huang, 2005. "Macroeconomic Determinants of Workers’ Remittances: Host vs. Home Country’s Economic Conditions," International Finance 0507007, EconWPA, revised 29 Jul 2005.
- Owyang, Michael T. & Rapach, David E. & Wall, Howard J., 2009.
"States and the business cycle,"
Journal of Urban Economics,
Elsevier, vol. 65(2), pages 181-194, March.
- Cheung, Yin-Wong & Lai, Kon S, 1993. "Finite-Sample Sizes of Johansen's Likelihood Ration Tests for Conintegration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(3), pages 313-28, August.
- Stephen A. Woodbury, 2009.
Book chapters authored by Upjohn Institute researchers,
in: Kenneth G. Dau-Schmidt & Seth D. Harris & Orley Lobel (ed.), Labor and Employment Law and Economics, volume 2, pages 480-516
W.E. Upjohn Institute for Employment Research.
- Shaun K. Roache, 2008. "Central Americaâ€™s Regional Trends and U.S. Cycles," IMF Working Papers 08/50, International Monetary Fund.
- Paul W. Miller & Leanne M. Neo, 2003. "Labour Market Flexibility and Immigrant Adjustment," The Economic Record, The Economic Society of Australia, vol. 79(246), pages 336-356, 09.
- Matteo Bugamelli & Francesco Paternò, 2011.
"Output Growth Volatility and Remittances,"
London School of Economics and Political Science, vol. 78(311), pages 480-500, 07.
- Serdar Sayan, 2004. "Guest Workers' Remittances and Output Fluctuations in Host and Home Countries : The Case of Remittances from Turkish Workers in Germany," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 40(6), pages 68-81, November.
- El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
- Aggarwal, Reena & Demirguc-Kunt, Asli & Martinez Peria, Maria Soledad, 2006. "Do workers'remittances promote financial development ?," Policy Research Working Paper Series 3957, The World Bank.
- Keith Phillips & Jesus Cañas, 2008. "Regional business cycle integration along the US–Mexico border," The Annals of Regional Science, Springer, vol. 42(1), pages 153-168, March.
- Keith R. Phillips & Jesus Canas, 2004. "Business cycle coordination along the Texas-Mexico border," Working Papers 0502, Federal Reserve Bank of Dallas.
When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0710. 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: (Helena Lundin)
If references are entirely missing, you can add them using this form.