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Remittances and Macroeconomic Volatility in African Countries. [electronic resource]

Author/Creator:
Jidoud, Ahmat
Publication:
Washington, D.C. : International Monetary Fund, 2015.
Format/Description:
Government document
Book
1 online resource (37 p.)
Series:
IMF eLibrary
IMF Working Papers
IMF Working Papers
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Summary:
This paper investigates the channels through which remittances affect macroeconomic volatility in African countries using a dynamic stochastic general equilibrium (DSGE) model augmented with financial frictions. Empirical results indicate that remittances-as a share of GDP-have a significant smoothing impact on output volatility but their impact on consumption volatility is somewhat small. Furthermore, remittances are found to absorb a substantial amount of GDP shocks in these countries. An investigation of the theoretical channels shows that the stabilization impact of remittances essentially hinges on two channels: (i) the size of the negative wealth effect on labor supply induced by remittances and, (ii) the strength of financial frictions and the ability of remittances to alleviate these frictions.
Notes:
Part of the IMF eLibrary collection.
Description based on print version record.
Contributor:
Jidoud, Ahmat
Other format:
Print Version: Jidoud, Ahmat Remittances and Macroeconomic Volatility in African Countries
ISBN:
1498300944
9781498300940
ISSN:
1018-5941
Publisher Number:
10.5089/9781498300940.001 doi
Access Restriction:
Restricted for use by site license.