Are Bilateral Remittances Countercyclical?

DSpace/Manakin Repository

Are Bilateral Remittances Countercyclical?

Citable link to this page

 

 
Title: Are Bilateral Remittances Countercyclical?
Author: Frankel, Jeffrey A.
Citation: Frankel, Jeffrey A. 2010. Are Bilateral Remittances Countercyclical? HKS Faculty Research Working Paper Series RWP10-037, John F. Kennedy School of Government, Harvard University.
Full Text & Related Files:
Abstract: By putting together a relatively large data set on bilateral remittances of emigrants, this paper is able to shed light on the important hypothesis of smoothing. The smoothing hypothesis is that remittances are countercyclical with respect to income in the worker’s country of origin (the recipient of the remittance), while procyclical with respect to income in the migrant’s host country (the sender of the remittance). The econometric results confirm the hypothesis. This affirmation of smoothing is important for two reasons. First, it suggests that remittances should be placed on the list of criteria for an optimum currency area. Second, it brings into doubt plans by governments in some developing countries to harness remittances for their own use, in that government spending in these countries generally fails the test of countercyclicality which remittances pass.
Published Version: http://web.hks.harvard.edu/publications/workingpapers/citation.aspx?PubId=7411
Other Sources: http://www.nber.org/papers/w15419
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:4450131
Downloads of this work:

Show full Dublin Core record

This item appears in the following Collection(s)

 
 

Search DASH


Advanced Search
 
 

Submitters