Remittances over the Business Cycle: Theory and Evidence

Supriyo De (), Ergys Islamaj, Ayhan Kose and S. Reza Yousefi ()
Additional contact information
Supriyo De: The World Bank
S. Reza Yousefi: IMF

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: This paper examines the behavior of remittances over the business cycle and their potential to act as a stabilizer during periods of high business cycle volatility. Four main findings are reported. First, in theory, the cyclical behavior of remittances depends on the motives to remit. Second, remittances are less volatile than other foreign currency flows but do not appear to systemically co-move with business cycle fluctuations. Third, remittances are relatively stable even during episodes of sharp business cycle volatility, such as those associated with sudden stops and financial crises. Finally, remittances can help support consumption stability over the business cycle.

Keywords: remittances; business cycles; acyclical; sudden stops; risk sharing. (search for similar items in EconPapers)
JEL-codes: F24 F36 F41 F44 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Journal Article: Remittances over the business cycle: Theory and evidence (2019)
Working Paper: Remittances over the Business Cycle: Theory and Evidence (2019)
Working Paper: Remittances over the business cycle: theory and evidence (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:koc:wpaper:1601

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