 Are Indian Subcontinent remittance markets connected to each other?Journal of Asian Economics, 2022, vol. 80, issue C Abstract: Indian subcontinent countries are some of the largest exporters of labor, and thus, largest receivers of remittances. Having many characteristics in common, their labor markets may be connected due to labor substitution and complementarity. We study the interactions of remittance inflows into India, Pakistan, Bangladesh and Sri Lanka via the Diebold-Yilmaz method. We find a low degree of spillovers across countries. In other words, the dynamics of remittance inflows in each country are largely explained by internal factors, not due to spillovers from other countries. That indicates that international remittance inflows in countries in the Indian Subcontinent that we consider in this study are essentially independent. We also find that the dynamic connectedness tends to fall over time in the aftermath of the 2008–2010 financial crisis, which is reversed after 2014. The initial decline probably happened due to the recovery in the labor receiving economies whereas the increase after 2014 probably reflects the jitters felt in all economies. We conclude that spillover of four countries’ remittance inflows is time-varying. Keywords: Remittance inflows; Spillovers; Emerging Markets; International labor markets; Indian Subcontinent (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:80:y:2022:i:c:s1049007822000355 DOI: 10.1016/j.asieco.2022.101476 Access Statistics for this article Journal of Asian Economics is currently edited by C. Wiemer More articles in Journal of Asian Economics from Elsevier |
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