Rainfall, Financial Development, and Remittances: Evidence from Sub-Saharan Africa

Rabah Arezki and Markus Brückner

No 2011-30, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: We use annual variations in rainfall to examine the effects that exogenous, transitory income shocks have on remittances in a panel of 41 Sub-Saharan African countries during the period 1970-2007. Our main finding is that on average rainfall shocks have an insignificant contemporaneous effect on remittances. However, the marginal effect is significantly decreasing in the share of domestic credit to GDP. So much so, that at high levels of credit to GDP rainfall shocks have a significant negative effect on remittances, while at low levels of credit to GDP the effect of rainfall on remittances is significantly positive.

Keywords: Transitory Income Shocks; Remittances; Financial Development (search for similar items in EconPapers)
JEL-codes: F24 F30 O10 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2011-09
New Economics Papers: this item is included in nep-afr and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Rainfall, financial development, and remittances: Evidence from Sub-Saharan Africa (2012)
Working Paper: Rainfall, Financial Development, and Remittances: Evidence From Sub-Saharan Africa (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2011-30

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