Remittance Stability, Cyclicality and Stabilizing Impact in Developing Countries

Neagu, Ileana C.; Schiff, Maurice

dc.creator	Neagu, Ileana C.
dc.creator	Schiff, Maurice
dc.date	2012-03-19T19:12:59Z
dc.date	2012-03-19T19:12:59Z
dc.date	2009-10-01
dc.date.accessioned	2023-02-18T19:37:48Z
dc.date.available	2023-02-18T19:37:48Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091014134511
dc.identifier	http://hdl.handle.net/10986/4269
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/249769
dc.description	That remittances are a stable source of external finance seems to have become the received wisdom. In addition, many studies have found remittances to behave counter-cyclically, increasing during crises and times of hardship for the recipient countries. Are remittances reliable macroeconomic stabilizers? To answer this question, the present study examines the stability, cyclicality, and stabilizing impact of remittances in comparison with the same three features for other foreign-exchange inflows, namely foreign direct investment and official development aid. The analysis is performed at the country and regional levels rather than at the aggregate or global level (on which much of the received wisdom rests), because policymakers are concerned with the impact of remittances in their country rather than at the global level. The main findings for 1980-2007 are that in a majority of countries: i) official development aid is more stable than remittances, and remittances are more stable than foreign direct investment; ii) official development aid is counter-cyclical, while remittances are pro-cyclical, although less so than foreign direct investment; and iii) official development aid is stabilizing and remittances are destabilizing, although less so than foreign direct investment. The paper suggests that it is necessary to examine counter-cyclicality separately from the stabilizing impact, as the former does not seem to always imply the latter.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5077
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	AMOUNTS OF REMITTANCES
dc.subject	BALANCE OF PAYMENTS
dc.subject	BALANCE OF PAYMENTS STATISTICS
dc.subject	BANK POLICY
dc.subject	BRAIN DRAIN
dc.subject	BUSINESS CYCLE
dc.subject	BUSINESS CYCLES
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL INFLOW
dc.subject	CAPITAL INFLOWS
dc.subject	COMPENSATION OF EMPLOYEES
dc.subject	CORRELATION COEFFICIENT
dc.subject	CORRELATION COEFFICIENTS
dc.subject	COST REDUCTIONS
dc.subject	CURRENCY
dc.subject	CURRENCY CRISES
dc.subject	CURRENT ACCOUNT BALANCES
dc.subject	CYCLICAL MOVEMENTS
dc.subject	DETERMINANTS OF REMITTANCES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT FINANCE
dc.subject	DIRECT IMPACT OF REMITTANCES
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC CRISES
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC HARDSHIP
dc.subject	ECONOMIC IMPLICATIONS
dc.subject	ECONOMIC OUTLOOK
dc.subject	ECONOMIC RESEARCH
dc.subject	ECONOMIC SIZE
dc.subject	ECONOMICS RESEARCH
dc.subject	EFFECTS OF REMITTANCES
dc.subject	EMIGRANT REMITTANCES
dc.subject	EQUITY CAPITAL
dc.subject	EVOLUTION OF REMITTANCES
dc.subject	EXTERNAL FINANCE
dc.subject	EXTERNAL FINANCING
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL FLOWS
dc.subject	FINANCIAL SYSTEMS
dc.subject	FLUCTUATIONS
dc.subject	FOREIGN CAPITAL
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN EXCHANGE
dc.subject	FUTURE PROSPECTS
dc.subject	GDP
dc.subject	GDP DEFLATOR
dc.subject	GLOBAL DEVELOPMENT FINANCE
dc.subject	GLOBAL ECONOMIC PROSPECTS
dc.subject	GLOBAL REMITTANCE
dc.subject	GLOBAL REMITTANCES
dc.subject	GLOBALIZATION
dc.subject	GROWTH VOLATILITY
dc.subject	HOME COUNTRY
dc.subject	IMPACT OF REMITTANCES
dc.subject	INCOME
dc.subject	INCOME GROUP
dc.subject	INCOME GROUPS
dc.subject	INCOME LEVEL
dc.subject	INCREASE IN REMITTANCES
dc.subject	INFLATION
dc.subject	INFORMAL CHANNELS
dc.subject	INFORMAL REMITTANCES
dc.subject	INSURANCE
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL MIGRATION
dc.subject	INTERNATIONAL MONETARY FUND
dc.subject	INTERNATIONAL REMITTANCES
dc.subject	INVESTMENT OPPORTUNITIES
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CONSTRAINTS
dc.subject	LOW INCOME
dc.subject	LOW INCOME COUNTRIES
dc.subject	MACROECONOMIC DETERMINANTS
dc.subject	MACROECONOMIC EFFECTS
dc.subject	MACROECONOMIC INDICATORS
dc.subject	MACROECONOMIC SHOCKS
dc.subject	MIDDLE INCOME
dc.subject	MIDDLE INCOME COUNTRIES
dc.subject	MIDDLE-INCOME COUNTRIES
dc.subject	MIGRANT WORKERS
dc.subject	MIGRANTS
dc.subject	MORAL HAZARD
dc.subject	NATURAL DISASTER
dc.subject	NATURAL DISASTERS
dc.subject	OFFICIAL REMITTANCE
dc.subject	OFFICIAL REMITTANCE DATA
dc.subject	OUTPUT
dc.subject	OUTPUT PER CAPITA
dc.subject	OUTPUT VOLATILITY
dc.subject	OVERSEAS MIGRANTS
dc.subject	PARTICULAR COUNTRY
dc.subject	PORTFOLIO
dc.subject	POSITIVE COEFFICIENT
dc.subject	PRIVATE CAPITAL
dc.subject	PRIVATE CAPITAL FLOWS
dc.subject	RAPID GROWTH
dc.subject	REAL GDP
dc.subject	RECIPIENT COUNTRIES
dc.subject	RECIPIENT HOUSEHOLDS
dc.subject	REMITTANCE
dc.subject	REMITTANCE DATA
dc.subject	REMITTANCE FLOWS
dc.subject	REMITTANCE INFLOWS
dc.subject	REMITTANCE RECEIPTS
dc.subject	REMITTANCES
dc.subject	REMITTANCES FLOWS
dc.subject	RETURN
dc.subject	RISK REDUCTION
dc.subject	SAVINGS
dc.subject	SKILLED MIGRANTS
dc.subject	STANDARD DEVIATION
dc.subject	UTILITY FUNCTION
dc.subject	WORKER REMITTANCES
dc.subject	WORLD DEVELOPMENT INDICATORS
dc.title	Remittance Stability, Cyclicality and Stabilizing Impact in Developing Countries
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region