International Business Cycles and Remittance Flows

Debdulal Mallick and Arusha Cooray

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we investigate the macroeconomic determinants and the effect of host country business cycles on remittance inflows. Estimating a dynamic panel data model by the system GMM, we document that remittance inflows are pro-cyclical to home country volatility but counter-cyclical to the volatility in host countries. This result does not hold for high income counties for which remittance inflows are acyclical to home country volatility but pro-cyclical to the volatility in host countries. For a host country, remittance outflows are counter-cyclical to the volatility of home countries. Trade openness is the single most important factor that determines both remittance inflows and outflows for the home and host countries, respectively.

Keywords: Remittance; volatility; international business cycle; dynamic panel data (search for similar items in EconPapers)
JEL-codes: C23 E32 F22 F24 (search for similar items in EconPapers)
Date: 2010-08
New Economics Papers: this item is included in nep-ifn and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: International business cycles and remittance flows (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:25675

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