Remittances and Vulnerability in Developing Countries

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 r...

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Main Authors:	Bettin, Giulia, Presbitero, Andrea F., Spatafora, Nikola
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCESS OF MIGRANTS ACCESS TO FINANCIAL SERVICES AMERICAN DEVELOPMENT BANK ARMED _CONFLICT ARMED CONFLICT ARMED CONFLICTS BANK BRANCHES BANKING SYSTEM BANKS BARRIERS TO REMITTANCES BRAIN DRAIN BULLETIN BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANK CHECKS CITIZENSHIP COMMODITY PRICES COMMUNITIES OF MIGRANTS COUNTRY OF ORIGIN CREDIT CONSTRAINTS CREDIT MARKETS CYCLICAL FLUCTUATIONS CYCLICAL MOVEMENTS DATA ON REMITTANCES DEBT STOCKS DETERMINANTS OF REMITTANCES DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT POLICY DIASPORA DISTRIBUTION OF REMITTANCES DIVERSIFICATION DOMESTIC CREDIT ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HARDSHIP ECONOMIC OUTLOOK ECONOMIC SHOCKS EFFECT OF REMITTANCES EMERGING MARKET EMERGING MARKETS EMIGRANT REMITTANCES EMIGRATION EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLES EXCHANGE RATES EXOGENOUS INCOME EXPENDITURE EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL SHOCKS FAMILIES FAMILY LOANS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOW FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SERVICES FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES GENDER GEOGRAPHIC DISPERSION GLOBAL REMITTANCES GLOBALIZATION GROWTH RATE GROWTH VOLATILITY HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLD WEALTH HUMAN CAPITAL IMMIGRATION IMMIGRATION POLICIES IMMIGRATION POLICY IMPACT OF REMITTANCES INCOME LEVEL INCOME LEVELS INCOME SHOCKS INCREASE IN REMITTANCES INFORMAL CHANNELS INHERITANCE INSTRUMENTAL VARIABLES INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL ASSISTANCE INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MIGRATION INTERNATIONAL MONETARY FUND INTERNATIONAL REMITTANCES INTERNATIONAL TRANSFERS INVESTMENT OPPORTUNITIES LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL BANK LOCAL CAPACITY LOCAL ECONOMIES LOW INCOME LOW INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC DETERMINANTS MACROECONOMIC FLUCTUATIONS MACROECONOMIC STABILITY MACROECONOMICS MARKET STRUCTURE MIDDLE INCOME MIDDLE INCOME COUNTRIES MIGRANT MIGRANT COMMUNITIES MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MONETARY FUND MONEY TRANSFER MONEY TRANSFER OPERATORS NATIVE WORKERS NATURAL DISASTERS NEGATIVE SHOCK NEGATIVE SHOCKS NUMBER OF MIGRANTS OFFICIAL DEVELOPMENT ASSISTANCE OPEN ECONOMIES OUTPUT VOLATILITY PEACE POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT POSTAL SYSTEM PRIVATE CAPITAL PRIVATE DEBT PRIVATE SECTOR PROGRESS REAL ESTATE REAL EXCHANGE RATE RECESSION RECESSIONS RECIPIENT COUNTRIES RECIPIENT COUNTRY RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION COEFFICIENTS REMITTANCE REMITTANCE CHANNELS REMITTANCE CORRIDOR REMITTANCE CORRIDORS REMITTANCE DATA REMITTANCE FLOWS REMITTANCE INFLOWS REMITTANCE OUTFLOWS REMITTANCE TRANSFER REMITTANCE TRANSFERS REMITTANCES REMITTERS RESERVES RESPECT RETURN REVIEW OF ECONOMICS ROLE OF REMITTANCES SAVINGS SEND REMITTANCES SHARE OF CREDIT SKILLED MIGRANTS SMALL BUSINESSES SOCIAL RESEARCH SPECIFIC REMITTANCE STANDARD DEVIATION STANDARD ERRORS STOCKS STRUCTURAL CHARACTERISTICS TEMPORARY WORKERS TRAINING CENTRE TRANSACTION TRANSACTION COSTS TRANSFER COSTS TRANSFER SERVICES UNDOCUMENTED MIGRANTS UNEMPLOYMENT VULNERABILITY WORKER REMITTANCES WORKERS REMITTANCES
Online Access:	http://documents.worldbank.org/curated/en/2014/03/19272414/remittances-vulnerability-developing-countries http://hdl.handle.net/10986/17727

id	okr-10986-17727
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESS OF MIGRANTS ACCESS TO FINANCIAL SERVICES AMERICAN DEVELOPMENT BANK ARMED _CONFLICT ARMED CONFLICT ARMED CONFLICTS BANK BRANCHES BANKING SYSTEM BANKS BARRIERS TO REMITTANCES BRAIN DRAIN BULLETIN BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANK CHECKS CITIZENSHIP COMMODITY PRICES COMMUNITIES OF MIGRANTS COUNTRY OF ORIGIN CREDIT CONSTRAINTS CREDIT MARKETS CYCLICAL FLUCTUATIONS CYCLICAL MOVEMENTS DATA ON REMITTANCES DEBT STOCKS DETERMINANTS OF REMITTANCES DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT POLICY DIASPORA DISTRIBUTION OF REMITTANCES DIVERSIFICATION DOMESTIC CREDIT ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HARDSHIP ECONOMIC OUTLOOK ECONOMIC SHOCKS EFFECT OF REMITTANCES EMERGING MARKET EMERGING MARKETS EMIGRANT REMITTANCES EMIGRATION EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLES EXCHANGE RATES EXOGENOUS INCOME EXPENDITURE EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL SHOCKS FAMILIES FAMILY LOANS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOW FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SERVICES FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES GENDER GEOGRAPHIC DISPERSION GLOBAL REMITTANCES GLOBALIZATION GROWTH RATE GROWTH VOLATILITY HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLD WEALTH HUMAN CAPITAL IMMIGRATION IMMIGRATION POLICIES IMMIGRATION POLICY IMPACT OF REMITTANCES INCOME LEVEL INCOME LEVELS INCOME SHOCKS INCREASE IN REMITTANCES INFORMAL CHANNELS INHERITANCE INSTRUMENTAL VARIABLES INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL ASSISTANCE INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MIGRATION INTERNATIONAL MONETARY FUND INTERNATIONAL REMITTANCES INTERNATIONAL TRANSFERS INVESTMENT OPPORTUNITIES LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL BANK LOCAL CAPACITY LOCAL ECONOMIES LOW INCOME LOW INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC DETERMINANTS MACROECONOMIC FLUCTUATIONS MACROECONOMIC STABILITY MACROECONOMICS MARKET STRUCTURE MIDDLE INCOME MIDDLE INCOME COUNTRIES MIGRANT MIGRANT COMMUNITIES MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MONETARY FUND MONEY TRANSFER MONEY TRANSFER OPERATORS NATIVE WORKERS NATURAL DISASTERS NEGATIVE SHOCK NEGATIVE SHOCKS NUMBER OF MIGRANTS OFFICIAL DEVELOPMENT ASSISTANCE OPEN ECONOMIES OUTPUT VOLATILITY PEACE POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT POSTAL SYSTEM PRIVATE CAPITAL PRIVATE DEBT PRIVATE SECTOR PROGRESS REAL ESTATE REAL EXCHANGE RATE RECESSION RECESSIONS RECIPIENT COUNTRIES RECIPIENT COUNTRY RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION COEFFICIENTS REMITTANCE REMITTANCE CHANNELS REMITTANCE CORRIDOR REMITTANCE CORRIDORS REMITTANCE DATA REMITTANCE FLOWS REMITTANCE INFLOWS REMITTANCE OUTFLOWS REMITTANCE TRANSFER REMITTANCE TRANSFERS REMITTANCES REMITTERS RESERVES RESPECT RETURN REVIEW OF ECONOMICS ROLE OF REMITTANCES SAVINGS SEND REMITTANCES SHARE OF CREDIT SKILLED MIGRANTS SMALL BUSINESSES SOCIAL RESEARCH SPECIFIC REMITTANCE STANDARD DEVIATION STANDARD ERRORS STOCKS STRUCTURAL CHARACTERISTICS TEMPORARY WORKERS TRAINING CENTRE TRANSACTION TRANSACTION COSTS TRANSFER COSTS TRANSFER SERVICES UNDOCUMENTED MIGRANTS UNEMPLOYMENT VULNERABILITY WORKER REMITTANCES WORKERS REMITTANCES
spellingShingle	ACCESS OF MIGRANTS ACCESS TO FINANCIAL SERVICES AMERICAN DEVELOPMENT BANK ARMED _CONFLICT ARMED CONFLICT ARMED CONFLICTS BANK BRANCHES BANKING SYSTEM BANKS BARRIERS TO REMITTANCES BRAIN DRAIN BULLETIN BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANK CHECKS CITIZENSHIP COMMODITY PRICES COMMUNITIES OF MIGRANTS COUNTRY OF ORIGIN CREDIT CONSTRAINTS CREDIT MARKETS CYCLICAL FLUCTUATIONS CYCLICAL MOVEMENTS DATA ON REMITTANCES DEBT STOCKS DETERMINANTS OF REMITTANCES DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT POLICY DIASPORA DISTRIBUTION OF REMITTANCES DIVERSIFICATION DOMESTIC CREDIT ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HARDSHIP ECONOMIC OUTLOOK ECONOMIC SHOCKS EFFECT OF REMITTANCES EMERGING MARKET EMERGING MARKETS EMIGRANT REMITTANCES EMIGRATION EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLES EXCHANGE RATES EXOGENOUS INCOME EXPENDITURE EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL SHOCKS FAMILIES FAMILY LOANS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOW FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SERVICES FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES GENDER GEOGRAPHIC DISPERSION GLOBAL REMITTANCES GLOBALIZATION GROWTH RATE GROWTH VOLATILITY HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLD WEALTH HUMAN CAPITAL IMMIGRATION IMMIGRATION POLICIES IMMIGRATION POLICY IMPACT OF REMITTANCES INCOME LEVEL INCOME LEVELS INCOME SHOCKS INCREASE IN REMITTANCES INFORMAL CHANNELS INHERITANCE INSTRUMENTAL VARIABLES INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL ASSISTANCE INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MIGRATION INTERNATIONAL MONETARY FUND INTERNATIONAL REMITTANCES INTERNATIONAL TRANSFERS INVESTMENT OPPORTUNITIES LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL BANK LOCAL CAPACITY LOCAL ECONOMIES LOW INCOME LOW INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC DETERMINANTS MACROECONOMIC FLUCTUATIONS MACROECONOMIC STABILITY MACROECONOMICS MARKET STRUCTURE MIDDLE INCOME MIDDLE INCOME COUNTRIES MIGRANT MIGRANT COMMUNITIES MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MONETARY FUND MONEY TRANSFER MONEY TRANSFER OPERATORS NATIVE WORKERS NATURAL DISASTERS NEGATIVE SHOCK NEGATIVE SHOCKS NUMBER OF MIGRANTS OFFICIAL DEVELOPMENT ASSISTANCE OPEN ECONOMIES OUTPUT VOLATILITY PEACE POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT POSTAL SYSTEM PRIVATE CAPITAL PRIVATE DEBT PRIVATE SECTOR PROGRESS REAL ESTATE REAL EXCHANGE RATE RECESSION RECESSIONS RECIPIENT COUNTRIES RECIPIENT COUNTRY RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION COEFFICIENTS REMITTANCE REMITTANCE CHANNELS REMITTANCE CORRIDOR REMITTANCE CORRIDORS REMITTANCE DATA REMITTANCE FLOWS REMITTANCE INFLOWS REMITTANCE OUTFLOWS REMITTANCE TRANSFER REMITTANCE TRANSFERS REMITTANCES REMITTERS RESERVES RESPECT RETURN REVIEW OF ECONOMICS ROLE OF REMITTANCES SAVINGS SEND REMITTANCES SHARE OF CREDIT SKILLED MIGRANTS SMALL BUSINESSES SOCIAL RESEARCH SPECIFIC REMITTANCE STANDARD DEVIATION STANDARD ERRORS STOCKS STRUCTURAL CHARACTERISTICS TEMPORARY WORKERS TRAINING CENTRE TRANSACTION TRANSACTION COSTS TRANSFER COSTS TRANSFER SERVICES UNDOCUMENTED MIGRANTS UNEMPLOYMENT VULNERABILITY WORKER REMITTANCES WORKERS REMITTANCES Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola Remittances and Vulnerability in Developing Countries
geographic_facet	East Asia and Pacific
relation	Policy Research Working Paper;No. 6812
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola
author_facet	Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola
author_sort	Bettin, Giulia
title	Remittances and Vulnerability in Developing Countries
title_short	Remittances and Vulnerability in Developing Countries
title_full	Remittances and Vulnerability in Developing Countries
title_fullStr	Remittances and Vulnerability in Developing Countries
title_full_unstemmed	Remittances and Vulnerability in Developing Countries
title_sort	remittances and vulnerability in developing countries
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/03/19272414/remittances-vulnerability-developing-countries http://hdl.handle.net/10986/17727
_version_	1764438198876897280
spelling	okr-10986-177272021-04-23T14:03:40Z Remittances and Vulnerability in Developing Countries Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola ACCESS OF MIGRANTS ACCESS TO FINANCIAL SERVICES AMERICAN DEVELOPMENT BANK ARMED _CONFLICT ARMED CONFLICT ARMED CONFLICTS BANK BRANCHES BANKING SYSTEM BANKS BARRIERS TO REMITTANCES BRAIN DRAIN BULLETIN BUSINESS CYCLE BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CENTRAL BANK CHECKS CITIZENSHIP COMMODITY PRICES COMMUNITIES OF MIGRANTS COUNTRY OF ORIGIN CREDIT CONSTRAINTS CREDIT MARKETS CYCLICAL FLUCTUATIONS CYCLICAL MOVEMENTS DATA ON REMITTANCES DEBT STOCKS DETERMINANTS OF REMITTANCES DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT POLICY DIASPORA DISTRIBUTION OF REMITTANCES DIVERSIFICATION DOMESTIC CREDIT ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ECONOMIC HARDSHIP ECONOMIC OUTLOOK ECONOMIC SHOCKS EFFECT OF REMITTANCES EMERGING MARKET EMERGING MARKETS EMIGRANT REMITTANCES EMIGRATION EMPLOYMENT OPPORTUNITIES ENDOGENOUS VARIABLES EXCHANGE RATES EXOGENOUS INCOME EXPENDITURE EXTERNAL DEBT EXTERNAL FINANCE EXTERNAL SHOCKS FAMILIES FAMILY LOANS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL FLOW FINANCIAL FLOWS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SERVICES FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES GENDER GEOGRAPHIC DISPERSION GLOBAL REMITTANCES GLOBALIZATION GROWTH RATE GROWTH VOLATILITY HOME COUNTRIES HOME COUNTRY HOST COUNTRIES HOST COUNTRY HOUSEHOLD WEALTH HUMAN CAPITAL IMMIGRATION IMMIGRATION POLICIES IMMIGRATION POLICY IMPACT OF REMITTANCES INCOME LEVEL INCOME LEVELS INCOME SHOCKS INCREASE IN REMITTANCES INFORMAL CHANNELS INHERITANCE INSTRUMENTAL VARIABLES INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL ASSISTANCE INTERNATIONAL BANK INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MIGRATION INTERNATIONAL MONETARY FUND INTERNATIONAL REMITTANCES INTERNATIONAL TRANSFERS INVESTMENT OPPORTUNITIES LIMITED ACCESS LIQUIDITY LIQUIDITY CONSTRAINTS LOCAL BANK LOCAL CAPACITY LOCAL ECONOMIES LOW INCOME LOW INCOME COUNTRIES LOW-INCOME COUNTRIES MACROECONOMIC CONDITIONS MACROECONOMIC DETERMINANTS MACROECONOMIC FLUCTUATIONS MACROECONOMIC STABILITY MACROECONOMICS MARKET STRUCTURE MIDDLE INCOME MIDDLE INCOME COUNTRIES MIGRANT MIGRANT COMMUNITIES MIGRANT REMITTANCES MIGRANT WORKERS MIGRANTS MIGRATION MONETARY FUND MONEY TRANSFER MONEY TRANSFER OPERATORS NATIVE WORKERS NATURAL DISASTERS NEGATIVE SHOCK NEGATIVE SHOCKS NUMBER OF MIGRANTS OFFICIAL DEVELOPMENT ASSISTANCE OPEN ECONOMIES OUTPUT VOLATILITY PEACE POLICY DISCUSSIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY PORTFOLIO POSITIVE COEFFICIENT POSTAL SYSTEM PRIVATE CAPITAL PRIVATE DEBT PRIVATE SECTOR PROGRESS REAL ESTATE REAL EXCHANGE RATE RECESSION RECESSIONS RECIPIENT COUNTRIES RECIPIENT COUNTRY RECIPIENT HOUSEHOLDS RECIPIENT OF REMITTANCES RECIPIENTS OF REMITTANCES REGRESSION COEFFICIENTS REMITTANCE REMITTANCE CHANNELS REMITTANCE CORRIDOR REMITTANCE CORRIDORS REMITTANCE DATA REMITTANCE FLOWS REMITTANCE INFLOWS REMITTANCE OUTFLOWS REMITTANCE TRANSFER REMITTANCE TRANSFERS REMITTANCES REMITTERS RESERVES RESPECT RETURN REVIEW OF ECONOMICS ROLE OF REMITTANCES SAVINGS SEND REMITTANCES SHARE OF CREDIT SKILLED MIGRANTS SMALL BUSINESSES SOCIAL RESEARCH SPECIFIC REMITTANCE STANDARD DEVIATION STANDARD ERRORS STOCKS STRUCTURAL CHARACTERISTICS TEMPORARY WORKERS TRAINING CENTRE TRANSACTION TRANSACTION COSTS TRANSFER COSTS TRANSFER SERVICES UNDOCUMENTED MIGRANTS UNEMPLOYMENT VULNERABILITY WORKER REMITTANCES WORKERS REMITTANCES 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. 2014-04-10T19:55:17Z 2014-04-10T19:55:17Z 2014-03 http://documents.worldbank.org/curated/en/2014/03/19272414/remittances-vulnerability-developing-countries http://hdl.handle.net/10986/17727 English en_US Policy Research Working Paper;No. 6812 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific

Remittances and Vulnerability in Developing Countries

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