Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions

Carlos Vargas-Silva () and Peng Huang ()

Journal of International Trade & Economic Development, 2006, vol. 15, issue 1, pages 81-99

Abstract: This study examines the determinants of worker's remittances. Variance decompositions, impulse response functions and Granger causality tests derived from a vector error correction model are used to test if remittances are affected by the macroeconomic conditions of the host (remittance sending) or home (remittance receiving) country. Data from Brazil, Colombia, the Dominican Republic, El Salvador, Mexico and the US are used. The results indicate that remittances respond more to changes in the macroeconomic conditions of the host country, than to changes in the macroeconomic conditions of the home country.

Keywords: Remittances; migration; international flows; error correction models (search for similar items in EconPapers)
Date: 2006
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