Remittances and vulnerability in developing countries

Giulia Bettin, Andrea Presbitero and Nikola Spatafora

No 93, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences

Abstract: 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 especially strongly in response to adverse exogenous shocks, such as natural disasters or large declines in the terms of trade. Remittances are also 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.

Keywords: Business Cycle; Gravity Model; Remittances; Shocks; Vulnerability (search for similar items in EconPapers)
JEL-codes: F33 F34 F35 O11 (search for similar items in EconPapers)
Pages: 32
Date: 2014-01
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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http://docs.dises.univpm.it/web/quaderni/pdfmofir/Mofir093.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Remittances and Vulnerability in Developing Countries (2017)
Working Paper: Remittances and Vulnerability in Developing Countries (2014)
Working Paper: Remittances and vulnerability in developing countries (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wmofir:93

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