Remittances and Vulnerability in Developing Countries PDF Download

Author: Giulia Bettin
Publisher: International Monetary Fund
ISBN: 148438508X
Category : Business & Economics
Languages : en
Pages : 33

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Book Description
This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in both source and recipient economies. We exploit a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to 107 developing countries over the period 2005-2011. We find that remittances are negatively correlated with the business cycle in recipient countries, and increase in response to adverse exogenous shocks, such as natural disasters or large declines in the terms of trade. Remittances are positively correlated with economic conditions in the source province. Nevertheless, in the presence of similar negative shocks to both source and recipient economies, remittances remain counter-cyclical with respect to the recipient country.

Author: Giulia Bettin
Publisher:
ISBN:
Category :
Languages : en
Pages : 30

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Book Description
This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in both source and recipient economies. The paper exploits a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to 87 developing countries over the period 2005-2011. Remittances are negatively correlated with the business cycle in recipient countries and increase especially strongly in response to adverse exogenous shocks, such as natural disasters or large terms-of-trade declines. Financial development in the source economy, which eases access to financial services for migrants and reduces transaction costs, is positively associated with remittances. Conversely, recipient-country financial development is negatively associated with remittances, suggesting that remittances help alleviate credit constraints.

Author: Mr. Kangni R Kpodar
Publisher: International Monetary Fund
ISBN: 1513578456
Category : Business & Economics
Languages : en
Pages : 35

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Book Description
This paper provides an early assessment of the dynamics and drivers of remittances during the COVID-19 pandemic, using a newly compiled monthly remittance dataset for a sample of 52 countries, of which 16 countries with bilateral remittance data. The paper documents a strong resilience in remittance flows, notwithstanding an unprecedent global recession triggered by the pandemic. Using the local projection approach to estimate the impulse response functions of remittance flows during Jan 2020-Dec 2020, the paper provides evidence that: (i) remittances responded positively to COVID-19 infection rates in migrant home countries, underscoring its role as an important automatic stabilizer; (ii) stricter containment measures have the unintended consequence of dampening remittances; and (iii) a shift from informal to formal remittance channels due to travel restrictions appears to have also played a role in the surge in formal remittances. Lastly, the size of the fiscal stimulus in host countries is positively associated with remittances as the fiscal response cushions the economic impact of the pandemic.

Author: Wim A. Naudé
Publisher:
ISBN:
Category : Natural disasters
Languages : en
Pages : 352

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Book Description
Vulnerability has become the defining challenge of our times. More than one billion people worldwide live in extreme poverty. Facing risks exacerbated by natural hazards, ill-health and macroeconomic volatility, many are mired in inescapable poverty while millions others are on the brink of poverty. The need to better understand vulnerability is pressing, particularly in the case of developing countries where bulwarks against risks can be in short supply. This volume brings together essays from leading scholars to study the critical dimensions of vulnerability in developing countries, including ...

Author: Ibrahim Sirkeci
Publisher: World Bank Publications
ISBN: 0821388266
Category : Business & Economics
Languages : en
Pages : 471

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Book Description
During the 2008 financial crisis, the possible changes in remittance-sending behavior and potential avenues to alleviate a probable decline in remittance flows became concerns. This book brings together a wide array of studies from around the world focusing on the recent trends in remittance flows. The authors have gathered a select group of researchers from academic, practitioner and policy making bodies. Thus the book can be seen as a conversation between the different stakeholders involved in or affected by remittance flows globally. The book is a first-of-its-kind attempt to analyze the effects of an ongoing crisis on remittance flows globally. Data analyzed by the book reveals three trends. First, The more diversified the destinations and the labour markets for migrants the more resilient are the remittances sent by migrants. Second, the lower the barriers to labor mobility, the stronger the link between remittances and economic cycles in that corridor. And third, as remittances proved to be relatively resilient in comparison to private capital flows, many remittance-dependent countries became even more dependent on remittance inflows for meeting external financing needs. There are several reasons for migration and remittances to be relatively resilient to the crisis. First, remittances are sent by the stock (cumulative flows) of migrants, not only by the recent arrivals (in fact, recent arrivals often do not remit as regularly as they must establish themselves in their new homes). Second, contrary to expectations, return migration did not take place as expected even as the financial crisis reduced employment opportunities in the US and Europe. Third, in addition to the persistence of migrant stocks that lent persistence to remittance flows, existing migrants often absorbed income shocks and continued to send money home. Fourth, if some migrants did return or had the intention to return, they tended to take their savings back to their country of origin. Finally, exchange rate movements during the crisis caused unexpected changes in remittance behavior: as local currencies of many remittance recipient countries depreciated sharply against the US dollar, they produced a “sale” effect on remittance behavior of migrants in the US and other destination countries.

Author: Hector Perez-Saiz
Publisher: International Monetary Fund
ISBN: 1498324487
Category : Business & Economics
Languages : en
Pages : 37

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Book Description
We propose a simple macroeconomic model with input-output sectoral linkages based on Acemoglu et al. (2016) to quantify how changes in aggregate demand due to additional income from household’s remittances propagates through the network of input-output linkages in Sub-Saharan African countries. We first propose two network centrality measures to assess the role of some sectors as key input providers in the economy. Then, we use these measures to quantify the effect of sectoral linkages on sectoral and total output following an increase in remittances inflows. Our empirical results suggest that the effects of remittances on recipient economies increase with the degree of linkages across sectors, which is especially prominent in the case of the financial intermediation sector. Our paper contributes to the emerging macroeconomic literature on the propagation of shocks across sectors and the implications for the whole economy.

Author: Amelia Santos-Paulino
Publisher: Routledge
ISBN: 1317965639
Category : Business & Economics
Languages : en
Pages : 180

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Book Description
Small island developing states (SIDS) are characterised by high economic, geographical and social vulnerability. These states are perceived as economically vulnerable, exhibiting poor economic performance, and embedding low levels of achieved well-being on most criteria. SIDS, which occupy very large parts of the world, face idiosyncratic development challenges largely owing to their susceptibility to external shocks. Still, these countries are all too often overlooked in the development research literature. Arising from a UNU-WIDER research project, this book provides in-depth research on the international dimensions of SIDS development experiences. Using a wealth of data, as well as case studies, the main topics examined comprise: aid, policies and growth; the costs of neglect, in terms of losses owing to a country falling into the fragile states group, of that country and those in its region; the composition of trade and the impact of external shocks, and the impact of remittances. The studies jointly provide valuable insights for small islands and other developing countries in the pursuit of sustainable growth and development. This book was published as a special issue of the Journal of Development Studies.

Author:
Publisher: World Bank Publications
ISBN: 082136345X
Category :
Languages : en
Pages : 182

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Book Description
International migration, the movement of people across international boundaries to improve economic opportunity, has enormous implications for growth and welfare in both origin and destination countries. An important benefit to developing countries is the receipt of remittances or transfers from income earned by overseas emigrants. Official data show that development countries' remittance receipts totaled 160 billion in 2004, more than twice the size of official aid. This year's edition of Global Economic Prospects focuses on remittances and migration. The bulk of the book covers remittances.

Author: Manuel Orozco
Publisher: Lynne Rienner Pub
ISBN: 9781588268716
Category : Political Science
Languages : en
Pages : 249

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Book Description
Manuel Orozco moves beyond the numbers to provide a uniquely comprehensive, historically informed overview and analysis of the complex role of migrant remittances in the global economy. How do patterns of migration and remittances differ across regions? What kinds of regulatory and institutional frameworks best support the contributions of remittances to local development? What has been the impact of remittances on migrants and their families? Drawing on empirical data from five continents and firmly grounded in theory, Orozco¿s work reflects the evolution of our understanding about the importance of migrant remittances and the policies that govern them.

Author: S. Irudaya Rajan
Publisher: Taylor & Francis
ISBN: 1351375571
Category : Social Science
Languages : en
Pages : 321

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Book Description
This book highlights how climate change has affected migration in the Indian subcontinent. Drawing on field research, it argues that extreme weather events such as floods, droughts, cyclones, cloudbursts as well as sea-level rise, desertification and declining crop productivity have shown higher frequency in recent times and have depleted bio-physical diversity and the capacity of the ecosystem to provide food and livelihood security. The volume shows how the socio-economically poor are worst affected in these circumstances and resort to migration to survive. The essays in the volume study the role of remittances sent by migrants to their families in environmentally fragile zones in providing an important cushion and adaptation capabilities to cope with extreme weather events. The book looks at the socio-economic and political drivers of migration, different forms of mobility, mortality and morbidity levels in the affected population, and discusses mitigation and adaption strategies. The volume will be of great interest to scholars and researchers of environment and ecology, migration and diaspora studies, development studies, sociology and social anthropology, governance and public policy, and politics.