Remittances Channel and Fiscal Impact in the Middle East, North Africa, and Central Asia

This paper identifies a remittances channel that transmits exogenous shocks, such as business cycles in remittance-sending countries, to the public finances of remittance-receiving countries.

Are Foreign Aid and Remittance Inflows a Hedge against Food Price Shocks?

This paper explores the role of foreign aid and remittance inflows in the mitigation of the effects of food price shocks.

Oil Prices, External Income, and Growth: Lessons from Jordan

This paper extends the long-run growth model of Esfahani et al.

Do Remittances Reduce Aid Dependency?

Aid has been for decades an important source of financing for developing countries, but more recently remittance flows have increased rapidly and are beginning to dwarf aid flows. This paper investigates how remittances affect aid flows, and how this relationship varies depending on the channel of transmission from remittances to aid.

Regional economic outlook – Middle East and Central Asia

The Middle East and Central Asia Regional Economic Outlook (REO) is prepared biannually by the IMF’s Middle East and Central Asia Department (MCD).

Remittances in Pakistan—Why have they gone up, and why aren’t they coming down?

The flow of workers’ remittances to Pakistan has more than quadrupled in the last eight years and it shows no sign of slowing down, despite the economic downturn in the Gulf Cooperation Council (GCC) and other important host countries for Pakistani workers.

Rainfall, financial development and remittances: evidence from Sub-Saharan Africa

We use annual variation in rainfall to examine the effects that exogenous, transitory income shocks have on remittances in a panel of 42 Sub-Saharan African countries during the period 1960-2007.

Determinants of remittances: evidence from Tonga

This paper analyzes the determinants of remittances to Tonga. The results indicate that macroeconomic conditions in remitting countries and exchange rate fluctuations influence remittances.

Workers’ Remittances and the Equilibrium Real Exchange Rate: Theory and Evidence

This paper investigates the impact of workers’ remittances on equilibrium real exchange rates (ERER) in recipient economies. Using a small open economy model, it shows that standard “Dutch Disease” results of appreciation are substantially weakened or even overturned depending on: degree of openness; factor mobility between domestic sectors; countercyclicality of remittances; the share of consumption in tradables; and the sensitivity of a country’s risk premium to remittance flows.

Spillovers from Europe into Morocco and Tunisia

This paper examines the economic and financial linkages between Morocco and Tunisia and their European partners. Using structural vector autoregressions, we find that growth shocks in European partner countries generate significant responses on growth in Morocco and Tunisia. For Tunisia, exports and, to a much lesser extent, tourism appear to be the major transmission channels.