Intra-African migration and the real exchange rate

Morel Tien

International Economics, 2024, vol. 179, issue C

Abstract: Africa’s openness to migration is strongly continental (about 80% of African migrants are settled in Africa). This paper explores how intra-continental migration impacts the real exchange rates of African economies. International migration may impact the real exchange rate through many pathways (demand-side and supply-side effects on prices, indirect effects through demography structure and remittances), thus leading to contradictory effects. Using a sample of 51 African countries over the period 1990–2019, econometric estimations show evidence that an increase in net intra-African migration exerts an appreciating effect on the real exchange rate of host countries. This finding holds when controlling for potential endogeneity using gravity-based instruments for migration.

Keywords: Intra-African migration; Real exchange rate; Demographic structure; Remittances; Current account (search for similar items in EconPapers)
JEL-codes: C26 F22 F24 F31 O55 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:179:y:2024:i:c:s2110701724000490

DOI: 10.1016/j.inteco.2024.100526

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