Do Remittances to Latin America Depend on the U.S. Business Cycle? [electronic resource] / Ewa Gradzka.
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TextSeries: IMF Working Papers; Working Paper ; No. 07/273Publication details: Washington, D.C. : International Monetary Fund, 2007Description: 1 online resource (32 p.)ISBN: 1451868367 :ISSN: 1018-5941Subject(s): Cointegration | Correlations | Remittance Flows | Remittance | Dominican Republic | El Salvador | MexicoAdditional physical formats: Print Version:: Do Remittances to Latin America Depend on the U.S. Business Cycle?Online resources: IMF e-Library | IMF Book Store Abstract: We use a range of methods and remittance data from 1990 to 2007 to assess the strength and significance of linkages between remittance flows to Latin America and the U.S. business cycle. All of the evidence suggests that remittance flows are relatively insensitive to fluctuations in the U.S. cycle, underlining their role as a stable source of external financing, in good times and bad. A number of factors, notwithstanding uncertainties related to official remittance data reliability, might explain this result, including remittance smoothing and flexible immigrant labor markets.
We use a range of methods and remittance data from 1990 to 2007 to assess the strength and significance of linkages between remittance flows to Latin America and the U.S. business cycle. All of the evidence suggests that remittance flows are relatively insensitive to fluctuations in the U.S. cycle, underlining their role as a stable source of external financing, in good times and bad. A number of factors, notwithstanding uncertainties related to official remittance data reliability, might explain this result, including remittance smoothing and flexible immigrant labor markets.
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