Remittances and the Dutch Disease: Evidence from the Republic of Moldova
Katsuya Ito
International Economic Journal, 2017, vol. 31, issue 3, 462-469
Abstract:
This paper analyzes the linkage between exports, real effective exchange rates, and workers’ remittances in the Republic of Moldova based on impulse response functions through a vector autoregressive model. We find that an inflow of remittances leads to an appreciation of real exchange rate and a decline of exports, but the magnitude is small. Another finding is that the exchange rate appreciation does not affect remittance transfers for the first three-quarters.
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:taf:intecj:v:31:y:2017:i:3:p:462-469
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DOI: 10.1080/10168737.2017.1326514
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