Lartey, Emmanuel

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International macroeconomics, Monetary economics, Development economics
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Last updated January 31, 2023
Emmanuel K. K. Lartey is a professor of economics at California State University, Fullerton. He has also worked as an economist in the Office of the Chief Economist for the Africa Region at the World Bank. His research focuses on policy-relevant issues in international macroeconomics in the context of developing economies and covers manufacturing productivity and global value chains. He holds a PhD in economics from Boston College and possesses an extensive publication record.
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    The Effect of Remittances on the Current Account in Developing and Emerging Economies
    (World Bank, Washington, DC, 2018-06) Lartey, Emmanuel K.K.
    This paper presents an analysis of the effect of remittances on the current account in developing and emerging economies, incorporating an assessment of the extent to which exchange rate regimes impact the relationship. The main findings suggest there is a positive effect of remittances on the current account contemporaneously, but that the lagged effect is negative, which could be indicative of the existence of some underlying mechanisms characteristic of the Dutch disease phenomenon. In addition, the results show that a more flexible exchange regime dampens the contemporaneous positive effect that remittances have on the current account. The paper, therefore, asserts that policy makers face trade-offs pertaining to the use of exchange rate policy in managing the effects of remittances on the current account, which should be given due consideration when such policy choices are made.