Exchange Rate Flexibility and the Effect of Remittances on Economic Growth
This paper studies the question of whether exchange rate policy affects the impact of remittances on economic growth in recipient countries. The paper utilizes a comprehensive data set that comprises annual observations for 135 developing and trans...
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/731271483452591548/Exchange-rate-flexibility-and-the-effect-of-remittances-on-economic-growth http://hdl.handle.net/10986/25835 |
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okr-10986-258352021-06-08T14:42:46Z Exchange Rate Flexibility and the Effect of Remittances on Economic Growth Lartey, Emmanuel K.K. exchange rates remittances economic growth financial development panel data This paper studies the question of whether exchange rate policy affects the impact of remittances on economic growth in recipient countries. The paper utilizes a comprehensive data set that comprises annual observations for 135 developing and transition countries, spanning 1970-2007. The data for exchange rate regimes is based on the Reinhart and Rogoff exchange rate regime classification, whereas the data for remittances and all other variables are from the World Bank's World Development Indicators database. The findings indicate that more flexible exchange rate regimes are associated with a greater increase in economic growth following an increase in remittances, but also that the impact of remittances on growth is positive under a fixed exchange rate regime. The estimates suggest that a 1 percent increase in remittances increases per capita growth by about 0.79 percent under a fixed exchange rate regime, and that this effect increases by about 0.13 percent for a 1 point increase in the exchange rate flexibility index. The results further suggest that the effect of remittances under a fixed exchange rate regime is positive in less financially developed countries as well, but do not provide conclusive evidence that this effect varies inversely with exchange rate flexibility in such economies as theorized. 2017-01-10T18:18:19Z 2017-01-10T18:18:19Z 2016-12 Working Paper http://documents.worldbank.org/curated/en/731271483452591548/Exchange-rate-flexibility-and-the-effect-of-remittances-on-economic-growth http://hdl.handle.net/10986/25835 English en_US Policy Research Working Paper;No. 7932 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
exchange rates remittances economic growth financial development panel data |
| spellingShingle |
exchange rates remittances economic growth financial development panel data Lartey, Emmanuel K.K. Exchange Rate Flexibility and the Effect of Remittances on Economic Growth |
| geographic_facet |
Africa |
| relation |
Policy Research Working Paper;No. 7932 |
| description |
This paper studies the question of
whether exchange rate policy affects the impact of
remittances on economic growth in recipient countries. The
paper utilizes a comprehensive data set that comprises
annual observations for 135 developing and transition
countries, spanning 1970-2007. The data for exchange rate
regimes is based on the Reinhart and Rogoff exchange rate
regime classification, whereas the data for remittances and
all other variables are from the World Bank's World
Development Indicators database. The findings indicate that
more flexible exchange rate regimes are associated with a
greater increase in economic growth following an increase in
remittances, but also that the impact of remittances on
growth is positive under a fixed exchange rate regime. The
estimates suggest that a 1 percent increase in remittances
increases per capita growth by about 0.79 percent under a
fixed exchange rate regime, and that this effect increases
by about 0.13 percent for a 1 point increase in the exchange
rate flexibility index. The results further suggest that the
effect of remittances under a fixed exchange rate regime is
positive in less financially developed countries as well,
but do not provide conclusive evidence that this effect
varies inversely with exchange rate flexibility in such
economies as theorized. |
| format |
Working Paper |
| author |
Lartey, Emmanuel K.K. |
| author_facet |
Lartey, Emmanuel K.K. |
| author_sort |
Lartey, Emmanuel K.K. |
| title |
Exchange Rate Flexibility and the Effect of Remittances on Economic Growth |
| title_short |
Exchange Rate Flexibility and the Effect of Remittances on Economic Growth |
| title_full |
Exchange Rate Flexibility and the Effect of Remittances on Economic Growth |
| title_fullStr |
Exchange Rate Flexibility and the Effect of Remittances on Economic Growth |
| title_full_unstemmed |
Exchange Rate Flexibility and the Effect of Remittances on Economic Growth |
| title_sort |
exchange rate flexibility and the effect of remittances on economic growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/731271483452591548/Exchange-rate-flexibility-and-the-effect-of-remittances-on-economic-growth http://hdl.handle.net/10986/25835 |
| _version_ |
1764460271137456128 |