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Effect of Economic Uncertainty on Remittances Flows from Developed Countries

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  • Gnangnon, Sèna Kimm

Abstract

This article has investigated the effect of economic uncertainty on the remittances sent by migrants residing in developed countries to their home countries. The analysis builds on the economic uncertainty index developed by Ahir et al. (2018, 2019, 2022) that reflects the uncertainty related to economic and political events, regarding both near-term and long term concerns. It has revealed that economic uncertainty has deleterious effects on remittances outflows from developed countries, especially when it reaches high levels. This finding indicates that developing countries will suffer from reduced remittances inflows if the current fragmentation of the world were to become protracted, and result in higher barriers to the movement of capital and people.

Suggested Citation

  • Gnangnon, Sèna Kimm, 2023. "Effect of Economic Uncertainty on Remittances Flows from Developed Countries," EconStor Preprints 279480, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:279480
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    References listed on IDEAS

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    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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