Migrant Remittances and Macroeconomic Developments in the Source Countries
12 Pages Posted: 22 Jan 2018 Last revised: 2 Aug 2018
Date Written: June 1, 2017
Decades of studies on migrant remittances make one think that everything has been already said, but the recent dynamics of remittances challenge the accumulated knowledge. The economic downturn in the remittance-source countries led to a decline in the outflows and a further stagnation while the inflows to these countries sharply increased. The role of the source countries in remittances dynamics needs more attention. This article empirically examines the role of a set of macroeconomic indicators on the outflows of remittances in seven of the top ten source countries of remittances. Particular attention is given to the fluctuations in remittance outflows over the international business cycles and more specifically during the recent global crisis. The constructed model found a significant impact of inflation, unemployment and wages in the source countries on the outflow of remittances, while the economic growth has no significant direct impact.
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