Remittances and Vulnerability in Developing Countries

This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in recipient economies. We exploit a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to seventy-nine developing countries o...

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Main Authors:	Bettin, Giulia, Presbitero, Andrea F., Spatafora, Nikola L.
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2018
Subjects:	REMITTANCES SHOCKS BUSINESS CYCLES VULNERABILITY ACCESS TO FINANCE FINANCIAL SERVICES BANKING SYSTEM CAPITAL FLOWS COMMODITY PRICES BANKS DEBT DOMESTIC CREDIT EXCHANGE RATES
Online Access:	http://hdl.handle.net/10986/30126

id	okr-10986-30126
recordtype	oai_dc
spelling	okr-10986-301262021-05-25T10:54:40Z Remittances and Vulnerability in Developing Countries Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola L. REMITTANCES SHOCKS BUSINESS CYCLES VULNERABILITY ACCESS TO FINANCE FINANCIAL SERVICES BANKING SYSTEM CAPITAL FLOWS COMMODITY PRICES BANKS DEBT DOMESTIC CREDIT EXCHANGE RATES This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in recipient economies. We exploit a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to seventy-nine developing countries over the period 2005–2011. We find that remittances are negatively correlated with the business cycle in recipient countries and in particular increase in response to adverse exogenous shocks, such as large terms-of-trade declines. This effect is stronger where the migrant communities have a larger share of newly arrived migrants. Finally, we show that recipient-country financial development is negatively associated with remittances, suggesting that remittances help alleviate credit constraints. 2018-08-03T17:13:29Z 2018-08-03T17:13:29Z 2017-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/30126 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research Africa East Asia and Pacific Europe and Central Asia Latin America & Caribbean Middle East and North Africa South Asia Italy
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	REMITTANCES SHOCKS BUSINESS CYCLES VULNERABILITY ACCESS TO FINANCE FINANCIAL SERVICES BANKING SYSTEM CAPITAL FLOWS COMMODITY PRICES BANKS DEBT DOMESTIC CREDIT EXCHANGE RATES
spellingShingle	REMITTANCES SHOCKS BUSINESS CYCLES VULNERABILITY ACCESS TO FINANCE FINANCIAL SERVICES BANKING SYSTEM CAPITAL FLOWS COMMODITY PRICES BANKS DEBT DOMESTIC CREDIT EXCHANGE RATES Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola L. Remittances and Vulnerability in Developing Countries
geographic_facet	Africa East Asia and Pacific Europe and Central Asia Latin America & Caribbean Middle East and North Africa South Asia Italy
description	This paper examines how international remittances are affected by structural characteristics, macroeconomic conditions, and adverse shocks in recipient economies. We exploit a novel, rich panel data set, covering bilateral remittances from 103 Italian provinces to seventy-nine developing countries over the period 2005–2011. We find that remittances are negatively correlated with the business cycle in recipient countries and in particular increase in response to adverse exogenous shocks, such as large terms-of-trade declines. This effect is stronger where the migrant communities have a larger share of newly arrived migrants. Finally, we show that recipient-country financial development is negatively associated with remittances, suggesting that remittances help alleviate credit constraints.
format	Journal Article
author	Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola L.
author_facet	Bettin, Giulia Presbitero, Andrea F. Spatafora, Nikola L.
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	Published by Oxford University Press on behalf of the World Bank
publishDate	2018
url	http://hdl.handle.net/10986/30126
_version_	1764471272229568512

Remittances and Vulnerability in Developing Countries

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