Remittances in Russia and Caucasus and Central Asia: the Gravity Model
IMF Working Papers, July 17, 2020
Source details
- Canonical URL
- Remittances in Russia and Caucasus and Central Asia: the Gravity Model
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Bibliographic details
- Authors: Tigran Poghosyan
- Published: July 17, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513550206.001
Summary and scope
- Paper uses the gravity model to analyze remittance flows in Russia and Caucasus and Central Asia (CCA) countries.
- Focus on determinants of bilateral remittance flows and implications for recipient-country stability and responses to shocks.
- Publication details:
- Pages: 23
- Volume: 2020
- Issue: 128
- Series: Working Paper No. 2020/128
- DOI: https://doi.org/10.5089/9781513550206.001
- Stock No: WPIEA2020128
- ISBN: 9781513550206
- ISSN: 1018-5941
- Author: Tigran Poghosyan
- Date: July 17, 2020
Key empirical findings
- Standard gravity determinants fit remittance flows well:
- GDP in sending and recieiving countries.
- Bilateral distance.
- Existence of common borders.
- Common official language.
- Remittances respond to macroeconomic conditions in recipient countries:
- React to inflation and exchange rate movements in recipient countries to sustain their purchasing power.
- Demographic and behavioral determinants:
- In line with the altruism hypothesis, remittances flow to countries with higher age dependency ratio.
- Business cycle and stabilization role:
- Remittances are countercyclical and help stabilize outputs in recipient countries.
- Vulnerability to global shocks:
- Global shocks resulting in sharp output losses of sending countries lead to large volatility and decline of remittance inflows in recipient countries.
- Application:
- Results can be used to assess the impact of the COVID-19 shock on projected remittance flows into CCA.
Subjects and keywords (as listed)
- Subjects: Balance of payments, Econometric analysis, Exchange rates, Foreign exchange, Gravity models, Migration, Oil prices, Outward remittances, Population and demographics, Prices, Remittances
- Keywords: bilateral remittance, Central Asia and the Caucasus, country, country j, Exchange rates, Global, gravity model, Gravity models, international remittances, migration, Oil prices, Outward remittances, pair level, recipient country, remittance, remittance flow, Remittances, sending country, WP
Source: "Remittances in Russia and Caucasus and Central Asia: the Gravity Model", IMF Working Papers 2020, 128 (Tigran Poghosyan, July 17, 2020).
Content in this bundle
- Working Paper