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Workers remittances and the real exchange rate: a quantitative framework.

R Faini

    Journal of Population Economics
    |January 1, 1994
    PubMed
    Summary

    Workers' remittances are a significant part of international trade. This study found that the real exchange rate significantly influences remittance flows in five Mediterranean countries.

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    Trade, aid and migrations: some basic policy issues.

    European economic reviewยท1993
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    Area of Science:

    • Economics
    • International Finance
    • Macroeconomics

    Background:

    • Workers' remittances are a major component of international trade flows.
    • Understanding the determinants of remittances is crucial for economic analysis.

    Purpose of the Study:

    • To assess the responsiveness of workers' remittances to key macroeconomic variables.
    • To identify significant macroeconomic determinants of remittance flows.

    Main Methods:

    • Econometric estimation of a remittance equation.
    • Analysis of data for a sample of five Mediterranean countries.

    Main Results:

    • The real exchange rate was identified as a significant determinant of workers' remittances.
    • The study quantifies the impact of macroeconomic factors on remittance behavior.
    Keywords:
    CommerceDemographic FactorsDeveloped CountriesEconomic FactorsEuropeInternational MigrationMacroeconomic FactorsMicroeconomic FactorsMigrationPopulationPopulation DynamicsRemittances--determinantsSouthern Europe

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    Conclusions:

    • The real exchange rate plays a crucial role in influencing workers' remittances.
    • Findings have implications for economic policy and understanding capital flows.