The ambiguous role of remittances in West African countries facing climate variability

Cécile Couharde () and Rémi Generoso

Environment and Development Economics, 2015, vol. 20, issue 4, 493-515

Abstract: We investigate the consequences of remittances inflows on the macroeconomic performance of West African countries over the 1985–2007 period. We take into account the exposure of those countries to climate variability by estimating a PCHVAR model which allows heterogeneity between countries’ responses to rainfall shocks. Our results show that the impact of remittances on macroeconomic performance is highly sensitive to those shocks. In particular, when drought conditions prevail, remittances no longer exert any short-term spillover effects on growth and may increase a situation of economic dependence, by spurring agricultural imports.

Date: 2015
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Working Paper: The ambiguous role of remittances in West African countries facing climate variability (2014)
Working Paper: The ambiguous role of remittances in West African countries facing climate variability (2014)
Working Paper: The ambiguous role of remittances in West African countries facing climate variability (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cup:endeec:v:20:y:2015:i:04:p:493-515_00

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