Economics at your fingertips  

Dynamic Analysis for Measuring the Impact of Remittance Inflows on Inflation: Evidence From Georgia

Azer Dilanchiev, Aligul Aghayev, Md. Hasanur Rahman, Jannatul Ferdaus and Araz Baghirli

International Journal of Financial Research, 2021, vol. 12, issue 1, 339-347

Abstract: Remittance plays a critical role for small economies like Georgia as an unusual means of financing. In policy-making decisions, an understanding of the essence of the relationship between the amount of money exchanged and inflation is important. The paper studies the impact of remittance inflows, using quarterly data spanning a period (2000-2018), on the inflation rate in Georgia. The paper revealed that all independent variables have an effect on the long-run inflation rate; long-run inflation is positively associated with the leading explanatory variable remittance, and no relation is found in the short-run between remittance and inflation. The paper found that inflation's adjustment level to its equilibrium is 12% annually.

Keywords: remittances; inflation; co-integration; VECM (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.5430/ijfr.v12n1p339

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().

Page updated 2021-12-18
Handle: RePEc:jfr:ijfr11:v:12:y:2021:i:1:p:339-347