The Global Financial Crisis and Workers' Remittances to Africa: What's the Damage?

By Ralph Chami, Adolfo Barajas, Anjali Garg, Connel Fullenkamp

January 1, 2010

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Ralph Chami, Adolfo Barajas, Anjali Garg, and Connel Fullenkamp. The Global Financial Crisis and Workers' Remittances to Africa: What's the Damage?, (USA: International Monetary Fund, 2010) accessed September 18, 2024

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

Using data on the distribution of migrants from Africa, GDP growth forecasts for host countries, and after estimating remittance multipliers in recipient countries, this paper estimates the impact of the global economic crisis on African GDP via the remittance channel during 2009-2010. It forecasts remittance declines into African countries of between 3 and 14 percentage points, with migrants to Europe hardest hit while migrants within Africa relatively unaffected by the crisis. The estimated impact on GDP for relatively remittance-dependent countries is 2 percent for 2009, but will likely be short-lived, as host country income is projected to rise in 2010.

Subject: Balance of payments, Balance of payments statistics, Economic and financial statistics, Income, Migration, National accounts, Outward remittances, Population and demographics, Remittances

Keywords: Africa, Balance of payments statistics, Countries Armenia, Country, Economic growth, Europe, GDP growth, Global, Global crisis, Host-country GDP, Host-country income, Host-country variable, Income, Middle East, Migration, North Africa, Outward remittances, Remittance flow, Remittance multiplier, Remittance-determination equation, Remittance-GDP ratio, Remittances, Tranisiton country, WP

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/024
Stock No:

WPIEA2010024
ISBN:

9781451962413
ISSN:

1018-5941

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