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Les Transferts de Fonds Monétaires et les marchés boursiers dans les pays en développement
[Remittances and Stock Markets in Developing Countries]

Author

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  • ZAAROUR, Fatma
  • AJIMI, Adnene

Abstract

Migrant remittances tend to be more stable, unlike other sources of external financing, making remittances a reliable source for developing countries. Thus, despite the upward trend in remittances, stock markets in developing countries are generally characterized by high volatility. This study seeks to determine the relationship between remittances and stock markets in developing countries. This paper covers the period 1996-2018 using the Panel-Var model. This estimate shows the existence of a positive and significant relation between remittances and stock markets as well as a bi-causal relationship. Also, remittances have been found to be counter-cyclical and follow the theory of pure altruism.

Suggested Citation

  • ZAAROUR, Fatma & AJIMI, Adnene, 2021. "Les Transferts de Fonds Monétaires et les marchés boursiers dans les pays en développement [Remittances and Stock Markets in Developing Countries]," MPRA Paper 106413, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106413
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    File URL: https://mpra.ub.uni-muenchen.de/106413/1/MPRA_paper_106413.pdf
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    References listed on IDEAS

    as
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    3. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
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    5. Aggarwal, Reena & Demirgüç-Kunt, Asli & Pería, Maria Soledad Martínez, 2011. "Do remittances promote financial development?," Journal of Development Economics, Elsevier, vol. 96(2), pages 255-264, November.
    6. Helmut Lütkepohl, 2005. "New Introduction to Multiple Time Series Analysis," Springer Books, Springer, number 978-3-540-27752-1, December.
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    8. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    9. Issahaku, Haruna & Abor, Joshua Yindenaba & Harvey, Simon Kwadzogah, 2017. "Remittances, banks and stock markets: Panel evidence from developing countries," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1413-1427.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Shock; Panel-Var; remittances; migration; stock market.;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G19 - Financial Economics - - General Financial Markets - - - Other
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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