Remittance Concentration and Volatility: Evidence from 72 Developing Countries

January 17, 2020

Preview Citation

Format: Chicago

Amr Hosny. Remittance Concentration and Volatility: Evidence from 72 Developing Countries, (USA: International Monetary Fund, 2020) accessed November 8, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

Subject: Balance of payments, Exchange rate adjustments, Exchange rates, Foreign exchange, Imports, International trade, Oil prices, Prices, Remittances

Keywords: Developing countries, Exchange rate adjustments, Exchange rates, Global, Imports, Large remittance, Oil prices, Real GDP, Remittance, Remittance concentration, Remittance flow, Remittance FX inflow, Remittance inflow, Remittance-concentration dummy, Remittances, Volatility, WP

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/015
Stock No:

WPIEA2020015
ISBN:

9781513525884
ISSN:

1018-5941

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