Remittance Concentration and Volatility: Evidence from 72 Developing Countries
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Summary:
This paper contributes to the literature by introducing the role of geographic concentration of the source of remittances. Specifically, using data over 2010-2015 for 72 developing countries, we study the impact of (i) large remittances and (ii) the geographic concentration of the source of remittances on economic volatilities. Results suggest that while (i) large remittances can be stabilizing on average, (ii) high remittance concentration from source countries can aggravate economic volatilities in recipient countries. Results are robust to global shocks affecting both source and recipient countries, and volatility in the remittance-sending country.
Series:
Working Paper No. 2020/015
Subject:
Balance of payments Exchange rate adjustments Exchange rates Foreign exchange Imports International trade Oil prices Prices Remittances
English
Publication Date:
January 17, 2020
ISBN/ISSN:
9781513525884/1018-5941
Stock No:
WPIEA2020015
Pages:
22
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