Determinants of Emigrant Deposits in Cape Verde

Author/Editor:

International Monetary Fund

Publication Date:

May 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:

In the last decade Cape Verde has experienced a strong accumulation of emigrant deposits. These deposits have provided much needed foreign exchange to the country, adding support to the exchange rate peg. This paper studies the long-run determinants of emigrant deposits with respect to risk, wealth, and return variables, isolating speculative and altruistic motives underlying the accumulation of flows. The study suggests that the temporary character of recent emigration is responsible for the rise in the share of flows driven by altruism. Finally, the paper discusses policy implications in light of the empirical findings and the recent literature on this topic.

Series:

Working Paper No. 06/132

Subject:

English

Publication Date:

May 1, 2006

ISBN/ISSN:

9781451863925/1018-5941

Stock No:

WPIEA2006132

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

28

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