The Effect of Remittances on the Current Account in Developing and Emerging Economies

This paper presents an analysis of the effect of remittances on the current account in developing and emerging economies, incorporating an assessment of the extent to which exchange rate regimes impact the relationship. The main findings suggest th...

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Main Author:	Lartey, Emmanuel K.K.
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	REMITTANCES CURRENT ACCOUNT EXCHANGE RATES PANEL DATA MACROECONOMIC IMBALANCES EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES
Online Access:	http://documents.worldbank.org/curated/en/653721530122916127/The-effect-of-remittances-on-the-current-account-in-developing-and-emerging-economies http://hdl.handle.net/10986/29951

id	okr-10986-29951
recordtype	oai_dc
spelling	okr-10986-299512021-06-08T14:42:46Z The Effect of Remittances on the Current Account in Developing and Emerging Economies Lartey, Emmanuel K.K. REMITTANCES CURRENT ACCOUNT EXCHANGE RATES PANEL DATA MACROECONOMIC IMBALANCES EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES This paper presents an analysis of the effect of remittances on the current account in developing and emerging economies, incorporating an assessment of the extent to which exchange rate regimes impact the relationship. The main findings suggest there is a positive effect of remittances on the current account contemporaneously, but that the lagged effect is negative, which could be indicative of the existence of some underlying mechanisms characteristic of the Dutch disease phenomenon. In addition, the results show that a more flexible exchange regime dampens the contemporaneous positive effect that remittances have on the current account. The paper, therefore, asserts that policy makers face trade-offs pertaining to the use of exchange rate policy in managing the effects of remittances on the current account, which should be given due consideration when such policy choices are made. 2018-06-28T15:54:49Z 2018-06-28T15:54:49Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/653721530122916127/The-effect-of-remittances-on-the-current-account-in-developing-and-emerging-economies http://hdl.handle.net/10986/29951 English Policy Research Working Paper;No. 8498 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
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	REMITTANCES CURRENT ACCOUNT EXCHANGE RATES PANEL DATA MACROECONOMIC IMBALANCES EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES
spellingShingle	REMITTANCES CURRENT ACCOUNT EXCHANGE RATES PANEL DATA MACROECONOMIC IMBALANCES EMERGING MARKET ECONOMIES DEVELOPING COUNTRIES Lartey, Emmanuel K.K. The Effect of Remittances on the Current Account in Developing and Emerging Economies
relation	Policy Research Working Paper;No. 8498
description	This paper presents an analysis of the effect of remittances on the current account in developing and emerging economies, incorporating an assessment of the extent to which exchange rate regimes impact the relationship. The main findings suggest there is a positive effect of remittances on the current account contemporaneously, but that the lagged effect is negative, which could be indicative of the existence of some underlying mechanisms characteristic of the Dutch disease phenomenon. In addition, the results show that a more flexible exchange regime dampens the contemporaneous positive effect that remittances have on the current account. The paper, therefore, asserts that policy makers face trade-offs pertaining to the use of exchange rate policy in managing the effects of remittances on the current account, which should be given due consideration when such policy choices are made.
format	Working Paper
author	Lartey, Emmanuel K.K.
author_facet	Lartey, Emmanuel K.K.
author_sort	Lartey, Emmanuel K.K.
title	The Effect of Remittances on the Current Account in Developing and Emerging Economies
title_short	The Effect of Remittances on the Current Account in Developing and Emerging Economies
title_full	The Effect of Remittances on the Current Account in Developing and Emerging Economies
title_fullStr	The Effect of Remittances on the Current Account in Developing and Emerging Economies
title_full_unstemmed	The Effect of Remittances on the Current Account in Developing and Emerging Economies
title_sort	effect of remittances on the current account in developing and emerging economies
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/653721530122916127/The-effect-of-remittances-on-the-current-account-in-developing-and-emerging-economies http://hdl.handle.net/10986/29951
_version_	1764470884901322752

The Effect of Remittances on the Current Account in Developing and Emerging Economies

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