Effect of remittances on GDP and the trade deficit in Honduras

Rene Santos
Additional contact information
Rene Santos: Universidad Tecnológica Centroamericana

Lecturas de Economía, 2023, issue 99, 111-152

Abstract: The purpose of this article is to analyze the effect of workers’ remittances on the Gross Domestic Product (GDP) and the trade deficit in Honduras. The article was conducted under a quantitative approach, using time series data with annual periodicity from 1990 to 2019 extracted from the Central Bank of Honduras (BCH) and the World Bank (WB). A vector autoregressive model (VAR) is established. The results are presented using impulse response function figures (IRF) and Granger causality table of the VAR model, which reveal a positive response of GDP and a negative response of the trade deficit in the short and medium term to the shock caused by the inflow of workers’ remittances. Remittances were also found to be predictive of GDP variability at the 0.1 significance level and of the trade deficit at the 0.05 significance level.

Keywords: Remittances; GDP; trade deficit; VAR (search for similar items in EconPapers)
JEL-codes: C32 E23 F24 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://revistas.udea.edu.co/index.php/lecturasdeeconomia/article/view/350324 (application/pdf)

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: https://EconPapers.repec.org/RePEc:lde:journl:y:2023:i:99:p:111-152

Ordering information: This journal article can be ordered from
Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.

DOI: 10.17533/udea.le.n99a350324

Access Statistics for this article

Lecturas de Economía is currently edited by Carlos Andrés Vasco Correa

More articles in Lecturas de Economía from Universidad de Antioquia, Departamento de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Carlos Andrés Vasco Correa ().