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Macroeconomic Determinants of Workers’ Remittances: Host vs. Home Country’s Economic Conditions

Author

Listed:
  • Carlos Vargas-Silva

    (Western Michigan University)

  • Peng Huang

    (Western Michigan Univeristy)

Abstract

This study examines the determinants of worker’s remittances. Variance decompositions, impulse response functions and Granger causality tests derived from a vector error correction model are used to test if remittances are affected by the macroeconomic conditions of the host (remittance sending) or home (remittance receiving) country. Data from Brazil, Colombia, the Dominican Republic, El Salvador, Mexico and the U.S. are used. The results indicate that remittances respond more to changes in the macroeconomic conditions of the host country, than to changes in the macroeconomic conditions of the home country.

Suggested Citation

  • Carlos Vargas-Silva & Peng Huang, 2005. "Macroeconomic Determinants of Workers’ Remittances: Host vs. Home Country’s Economic Conditions," International Finance 0507007, EconWPA, revised 27 Nov 2005.
  • Handle: RePEc:wpa:wuwpif:0507007 Note: Type of Document - pdf; pages: 27
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; Exchange Rates; Migration;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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