Emigrants' remittances and Dutch Disease in Cape Verde

Yves Bourdet and Hans Falck

International Economic Journal, 2006, vol. 20, issue 3, 267-284

Abstract: Emigrants' remittances have increased rapidly over the past two decades. While earlier studies have focused on their microeconomic effect on incomes and poverty in recipient countries, the present study concentrates on the macroeconomic impact of remittances on the real exchange rate in Cape Verde. A main conclusion is that remittances give rise to a sort of Dutch Disease effect and thereby have an adverse effect on the competitiveness of the tradable sector. The magnitude of this effect in Cape Verde is not that large, however. The changing orientation of official aid to more growth-oriented aid, combined with a more export-oriented domestic policy, has contributed to limiting the adverse impact of emigrants' remittances on the competitiveness of the Cape Verdean economy.

Keywords: Remittances; real exchange rate; Dutch Disease; development assistance (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (129)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/10168730600879323 (text/html)
Access to full text is restricted to subscribers.

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:taf:intecj:v:20:y:2006:i:3:p:267-284

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RIEJ20

DOI: 10.1080/10168730600879323

Access Statistics for this article

International Economic Journal is currently edited by Jaymin Lee Editor

More articles in International Economic Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().