Remittances over the Business Cycle: Theory and Evidence

Ergys Islamaj, Ayhan Kose, Supriyo De and S. Reza Yousefi

MPRA Paper from University Library of Munich, Germany

Abstract: We examine the behaviour of remittances over the business cycle and their potential to act as a ‘stabilizer’ during periods of high business cycle volatility. Two main findings are reported. First, remittances are less volatile than other foreign currency flows and do not appear to systemically comove with business cycle fluctuations. Second, remittances are relatively stable even during episodes of sharp business cycle volatility, such as those associated with sudden stops and financial crises. We also provide an overview of the theoretical literature on the implications of different motives to remit for the cyclical behaviour of remittances.

Keywords: remittances; business cycles; acyclical; sudden stops (search for similar items in EconPapers)
JEL-codes: F24 F32 F45 G01 (search for similar items in EconPapers)
Date: 2019, Revised 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published in Economic Notes: Review of Banking, Finance and Monetary Economics 3.48(2019): pp. 1-18

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https://mpra.ub.uni-muenchen.de/109337/1/MPRA_paper_109337.pdf original version (application/pdf)

Related works:
Journal Article: Remittances over the business cycle: Theory and evidence (2019)
Working Paper: Remittances over the business cycle: theory and evidence (2016)
Working Paper: Remittances over the Business Cycle: Theory and Evidence (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:109337

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