The volatility effect of diaspora’s location: A migration portfolio approach
Eric Rougier () and
Cahiers du GREThA from Groupe de Recherche en Economie Théorique et Appliquée(GREThA)
Remittances can transmit volatility from migrants’ host countries to migrant’s home country for some common patterns of a country diaspora’s geographical distribution. In a migration portfolio model, the overall risk of volatility of any set of diaspora location is decomposed into a contagion and a concentration risks: a diaspora located in more volatile destinations induces a higher contagion risk, while a diaspora located in few destination countries increases the concentration risk. A series of estimations on a panel of 93 countries over 1995-2015 provide evidence for these two risks and their cumulative effects. Estimation of a structural model confirms that the geography of diaspora has an indirect impact on the origin country’s aggregate instability through remittances.
Keywords: Migration; remittances; macroeconomic volatility (search for similar items in EconPapers)
JEL-codes: F24 F3 F4 F62 F63 J61 O11 O15 O47 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:grt:wpegrt:2018-09
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