Download this Paper Open PDF in Browser

The Global Financial Crisis and Workers' Remittances to Africa: What's the Damage?

22 Pages Posted: 15 Feb 2010  

Adolfo Barajas

International Monetary Fund (IMF) - Western Hemisphere Department

Ralph Chami

International Monetary Fund (IMF)

Connel Fullenkamp

Duke University - Department of Economics

Anjali Garg

International Monetary Fund (IMF)

Date Written: January 2010

Abstract

Using data on the distribution of migrants from Africa, GDP growth forecasts for host countries, and after estimating remittance multipliers in recipient countries, this paper estimates the impact of the global economic crisis on African GDP via the remittance channel during 2009-2010. It forecasts remittance declines into African countries of between 3 and 14 percentage points, with migrants to Europe hardest hit while migrants within Africa relatively unaffected by the crisis. The estimated impact on GDP for relatively remittance-dependent countries is 2 percent for 2009, but will likely be short-lived, as host country income is projected to rise in 2010.

Keywords: Africa, Capital flows, Cross country analysis, Economic forecasting, Economic growth, Financial crisis, Global Financial Crisis 2008-2009, Migration, Workers remittances

Suggested Citation

Barajas, Adolfo and Chami, Ralph and Fullenkamp, Connel and Garg, Anjali, The Global Financial Crisis and Workers' Remittances to Africa: What's the Damage? (January 2010). IMF Working Paper No. 10/24. Available at SSRN: https://ssrn.com/abstract=1552291

Adolfo Barajas

International Monetary Fund (IMF) - Western Hemisphere Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-4152 (Phone)
202-623-6070 (Fax)

Ralph Chami

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6039 (Phone)
202-623-6068 (Fax)

Connel Fullenkamp

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States
(919) 660-1800 (Phone)

Anjali Garg

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Paper statistics

Downloads
243
Rank
105,155
Abstract Views
1,091