The volatility effect of diaspora's location

Eric Rougier and Nicolas Yol ()
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Nicolas Yol: OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique

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Abstract: Remittances can transmit volatility from host to home countries for some common patterns of 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 large panel of developing countries over 1995–2015 provide evidence for these two risks. 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: diaspora; fluctuations; income volatility; migration; portfolio choice; remittances (search for similar items in EconPapers)
Date: 2018-12-27
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03613528v1
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Published in The World Economy, 2018, 6 (42), pp.1796-1827. ⟨10.1111/twec.12773⟩

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Related works:
Journal Article: The volatility effect of diaspora's location (2019)
Working Paper: The volatility effect of diaspora’s location (2019)
Working Paper: The volatility effect of diaspora's location (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03613528

DOI: 10.1111/twec.12773

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