Bettin, GiuliaPresbitero, Andrea F.Spatafora, Nikola2014-04-102014-04-102014-03https://hdl.handle.net/10986/17727This 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.en-USCC BY 3.0 IGOACCESS OF MIGRANTSACCESS TO FINANCIAL SERVICESAMERICAN DEVELOPMENT BANKARMED _CONFLICTARMED CONFLICTARMED CONFLICTSBANK BRANCHESBANKING SYSTEMBANKSBARRIERS TO REMITTANCESBRAIN DRAINBULLETINBUSINESS CYCLEBUSINESS CYCLESCAPITAL FLOWSCAPITAL INFLOWSCENTRAL BANKCHECKSCITIZENSHIPCOMMODITY PRICESCOMMUNITIES OF MIGRANTSCOUNTRY OF ORIGINCREDIT CONSTRAINTSCREDIT MARKETSCYCLICAL FLUCTUATIONSCYCLICAL MOVEMENTSDATA ON REMITTANCESDEBT STOCKSDETERMINANTS OF REMITTANCESDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT POLICYDIASPORADISTRIBUTION OF REMITTANCESDIVERSIFICATIONDOMESTIC CREDITECONOMIC DEVELOPMENTECONOMIC GEOGRAPHYECONOMIC GROWTHECONOMIC HARDSHIPECONOMIC OUTLOOKECONOMIC SHOCKSEFFECT OF REMITTANCESEMERGING MARKETEMERGING MARKETSEMIGRANT REMITTANCESEMIGRATIONEMPLOYMENT OPPORTUNITIESENDOGENOUS VARIABLESEXCHANGE RATESEXOGENOUS INCOMEEXPENDITUREEXTERNAL DEBTEXTERNAL FINANCEEXTERNAL SHOCKSFAMILIESFAMILY LOANSFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL FLOWFINANCIAL FLOWSFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL RESOURCESFINANCIAL SERVICESFINANCIAL SYSTEMFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESGENDERGEOGRAPHIC DISPERSIONGLOBAL REMITTANCESGLOBALIZATIONGROWTH RATEGROWTH VOLATILITYHOME COUNTRIESHOME COUNTRYHOST COUNTRIESHOST COUNTRYHOUSEHOLD WEALTHHUMAN CAPITALIMMIGRATIONIMMIGRATION POLICIESIMMIGRATION POLICYIMPACT OF REMITTANCESINCOME LEVELINCOME LEVELSINCOME SHOCKSINCREASE IN REMITTANCESINFORMAL CHANNELSINHERITANCEINSTRUMENTAL VARIABLESINSURANCEINTEREST RATEINTEREST RATE DIFFERENTIALSINTERNATIONAL ASSISTANCEINTERNATIONAL BANKINTERNATIONAL DEBTINTERNATIONAL ECONOMICSINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL MIGRATIONINTERNATIONAL MONETARY FUNDINTERNATIONAL REMITTANCESINTERNATIONAL TRANSFERSINVESTMENT OPPORTUNITIESLIMITED ACCESSLIQUIDITYLIQUIDITY CONSTRAINTSLOCAL BANKLOCAL CAPACITYLOCAL ECONOMIESLOW INCOMELOW INCOME COUNTRIESLOW-INCOME COUNTRIESMACROECONOMIC CONDITIONSMACROECONOMIC DETERMINANTSMACROECONOMIC FLUCTUATIONSMACROECONOMIC STABILITYMACROECONOMICSMARKET STRUCTUREMIDDLE INCOMEMIDDLE INCOME COUNTRIESMIGRANTMIGRANT COMMUNITIESMIGRANT REMITTANCESMIGRANT WORKERSMIGRANTSMIGRATIONMONETARY FUNDMONEY TRANSFERMONEY TRANSFER OPERATORSNATIVE WORKERSNATURAL DISASTERSNEGATIVE SHOCKNEGATIVE SHOCKSNUMBER OF MIGRANTSOFFICIAL DEVELOPMENT ASSISTANCEOPEN ECONOMIESOUTPUT VOLATILITYPEACEPOLICY DISCUSSIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPORTFOLIOPOSITIVE COEFFICIENTPOSTAL SYSTEMPRIVATE CAPITALPRIVATE DEBTPRIVATE SECTORPROGRESSREAL ESTATEREAL EXCHANGE RATERECESSIONRECESSIONSRECIPIENT COUNTRIESRECIPIENT COUNTRYRECIPIENT HOUSEHOLDSRECIPIENT OF REMITTANCESRECIPIENTS OF REMITTANCESREGRESSION COEFFICIENTSREMITTANCEREMITTANCE CHANNELSREMITTANCE CORRIDORREMITTANCE CORRIDORSREMITTANCE DATAREMITTANCE FLOWSREMITTANCE INFLOWSREMITTANCE OUTFLOWSREMITTANCE TRANSFERREMITTANCE TRANSFERSREMITTANCESREMITTERSRESERVESRESPECTRETURNREVIEW OF ECONOMICSROLE OF REMITTANCESSAVINGSSEND REMITTANCESSHARE OF CREDITSKILLED MIGRANTSSMALL BUSINESSESSOCIAL RESEARCHSPECIFIC REMITTANCESTANDARD DEVIATIONSTANDARD ERRORSSTOCKSSTRUCTURAL CHARACTERISTICSTEMPORARY WORKERSTRAINING CENTRETRANSACTIONTRANSACTION COSTSTRANSFER COSTSTRANSFER SERVICESUNDOCUMENTED MIGRANTSUNEMPLOYMENTVULNERABILITYWORKER REMITTANCESWORKERS REMITTANCES10.1596/1813-9450-6812