Do immigrants’ funds affect the exchange rate?

Nusrate Aziz, Arusha Cooray and Wing Leong Teo

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: Using annual data over 1966-2014 from the Citizenship and Immigration statistics archives of Canada, we investigate how the funds brought into Canada by immigrants, affects the real effective exchange rate (REER) of Canada. We employ the ARDL bounds testing (Pesaran, Shin and Smith, 1999) and Dynamic OLS (Stock and Watson, 1993) approaches to cointegration. Both estimation methods indicate a long run relation between immigrants’ funds and exchange rate with immigrants’ funds leading to a significant appreciation of the exchange rate in Canada. These results are robust to different estimation methods and an alternative proxy measure for the funds brought into Canada by immigrants.

Keywords: Immigration; immigrants’ money; exchange rate; Canada (search for similar items in EconPapers)
JEL-codes: F31 F41 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2017-10
New Economics Papers: this item is included in nep-mig
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Related works:
Journal Article: Do immigrants’ funds affect the exchange rate? (2021)
Working Paper: Do immigrants’ funds affect the exchange rate? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2017-64

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