How do international remittances respond to real exchange rate movements?

Michael Bleaney and Mo Tian

No 2019-06, Discussion Papers from University of Nottingham, CREDIT

Abstract: Shifts in the bilateral real exchange rate between the countries of migrants’ origin and destination alter the real value of international remittances in origin currency relative to their real value in destination currency. Theoretical models predict a response in the form of some adjustment in remittances, measured in either currency. We construct real effective exchange rates weighted by migrant stocks for a large sample of countries to investigate the matter empirically. The evidence shows that remittances as a share of destination countries’ GDP tend to remain virtually unchanged, so that real exchange rate movements predominantly affect the real value of remittances in terms of origin countries’ currency. Possible explanations of this are discussed.

Keywords: exchange rates; migration; remittances (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-int, nep-mig and nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.nottingham.ac.uk/credit/documents/papers/2019/19-06.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:not:notcre:19/06

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, CREDIT School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes (hilary.hughes@nottingham.ac.uk).