## Macroeconomic Determinants of Remittances: Evidence from India

_IMF Working Papers, December 1, 2005_

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## Bibliographic details
- Authors: Poonam Gupta
- Published: December 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862430.001

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### Overview
- Remittances to India have been growing rapidly since 1991, making India one of the largest recipients of remittances.
- The paper analyzes determinants of remittances to India and attributes their growth over time primarily to increases in migration and total earnings of migrants.
- Remittances are affected by the economic environment in source countries and appear to be countercyclical—higher during periods of low economic growth in India.
- The paper finds that none of the remaining economic or political variables considered—including political uncertainty, interest rates, or exchange rate depreciation—affect remittances significantly.

### Key Findings
- Primary drivers:
  - Increase in migration.
  - Increase in total earnings of migrants.
- Cyclicality:
  - Remittances appear countercyclical: higher during periods of low economic growth in India.
- Non-significant factors:
  - Political uncertainty.
  - Interest rates.
  - Exchange rate depreciation.
  - Other economic or political variables tested in the paper.

### Subject Areas and Keywords
- Subject: Capital account, Current account, Market exchange rates, Oil prices, Remittances
- Keywords: dependent variable, India, remittance, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/macroeconomic-determinants-of-remittances-evidence-from-india-18728_