Publication: Remittances and Vulnerability in Developing Countries
Date
2014-03
ISSN
Published
2014-03
Author(s)
Abstract
This paper examines how international
remittances are affected by structural characteristics,
macroeconomic conditions, and adverse shocks in both source
and recipient economies. The paper exploits a novel, rich
panel data set, covering bilateral remittances from 103
Italian provinces to 87 developing countries over the period
2005-2011. Remittances are negatively correlated with the
business cycle in recipient countries and increase
especially strongly in response to adverse exogenous shocks,
such as natural disasters or large terms-of-trade declines.
Financial development in the source economy, which eases
access to financial services for migrants and reduces
transaction costs, is positively associated with
remittances. Conversely, recipient-country financial
development is negatively associated with remittances,
suggesting that remittances help alleviate credit constraints.
Link to Data Set
Citation
“Bettin, Giulia; Presbitero, Andrea F.; Spatafora, Nikola. 2014. Remittances and Vulnerability in Developing Countries. Policy Research Working Paper;No. 6812. © World Bank, Washington, DC. http://hdl.handle.net/10986/17727 License: CC BY 3.0 IGO.”
Report Series
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