Remittances and the real effective exchange rate

Gazi Hassan () and Mark Holmes ()

MPRA Paper from University Library of Munich, Germany

Abstract: We examine the long-run relationship between remittances and the real exchange rate for less developed countries using a panel cointegration approach. We employ an innovative method for the measurement of the multilateral real effective exchange rate and we focus on high remittance economies. We find a small inelastic, but significant, long-run relationship which confirms a “Dutch disease” type effect. Short-run confirmation is given by a panel error correction model. Potential asymmetries in this relationship are explored using quantile regression analysis.

Keywords: Remittances; Real Effective Exchange Rate; Panel cointegration; Panel error correction; Quantile regression (search for similar items in EconPapers)
JEL-codes: F0 F1 F24 O1 (search for similar items in EconPapers)
Date: 2012-06-01
New Economics Papers: this item is included in nep-opm
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Citations: View citations in EconPapers (6)

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Journal Article: Remittances and the real effective exchange rate (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:40084

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