Business Cycles and Workers' Remittances: How Do Migrant Workers Respond to Cyclical Movements of GDP At Home?

Author/Editor:

Serdar Sayan

Publication Date:

February 1, 2006

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Workers' remittances are often argued to have a tendency to move countercyclically with the GDP in recipient countries since migrant workers are expected to remit more during down cycles of economic activity back home. Yet, how much to remit is a complex decision involving other factors, and different variables driving remittance behavior are differently affected by the state of economic activity over the business cycle. This paper investigates the behavior of workers' remittances flows into 12 developing countries over their respective business cycles during 1976-2003 and finds that countercyclicality of receipts is not commonly observed across these countries.

Series:

Working Paper No. 2006/052

Subject:

Balance of payments Business cycles Economic growth Financial sector policy and analysis Income Labor Migrant labor National accounts Procyclicality Remittances

English

Publication Date:

February 1, 2006

ISBN/ISSN:

9781451863123/1018-5941

Stock No:

WPIEA2006052

Pages:

21

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