Exchange rate, remittances and expenditure of foreign-bornhouseholds: evidence from Australia
Nazmun Ratna and
Shamim Shakur ()
Additional contact information
Nazmun Ratna: Faculty of Agribusiness and Commerce, Lincoln University, Canterbury, New Zealand
Shamim Shakur: School of Economics and Finance, Massey University, Palmerston North, New Zealand
No 1901, Discussion Papers from School of Economics and Finance, Massey University, New Zealand
We examined the impact of the depreciation of the Australian dollar (AU$) during 2013-2015 onthe expenditure of households with foreign-born members (HFBMs) in Australia. Employing the difference-in-differences method and 2013-2015 Nielson Homescan Panel Survey data, we found that HFBMs spent around 2.4 percent more on their food expenditure in 2014 and 4.0 percentmore in 2015 compared to their native counterparts. Further investigation indicated that neither incomes nor food prices nor the expenditures on imported food items changed differently for any group in that period, while an analysis with HILDA survey data indicates a similar pattern fortotal expenditures. With reduced outward aggregate remittances from Australia over the sametime, we argue that falling AU$ induces HFBMs to substitute for consumption in the homecountry with that in the host nation. Our empirical results provide fresh insights on how changesin the exchange rate may affect immigrants differently than natives.
Keywords: Australia; exchange rate; immigrant; consumption (search for similar items in EconPapers)
JEL-codes: D12 D60 I30 Z13 Z18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Exchange rate, remittances and expenditure of foreign-born households: evidence from Australia (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mas:dpaper:1901
Access Statistics for this paper
More papers in Discussion Papers from School of Economics and Finance, Massey University, New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Mark Woods ().