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Remittances at record highs in Latin America: Time to revisit the Dutch disease

Author

Listed:
  • Arnoldo López-Marmolejo

    (Inter-American Development Bank)

  • Carlos Vladimir Rodríguez-Caballero

    (ITAM and Creates)

  • Daniel Ventosa-Santaulà ria

    (CIDE)

Abstract

With remittances reaching historic highs in many Latin American countries, this paper evaluates the existence of Dutch disease in that region on a country-by-country basis. To do so, we employ heterogeneous panel data models with cross-sectional dependence to estimate the determinants of the real exchange rate and calculate the effect of net remittance flows in the region by country. In this context, various countries' future economic development must address this potential loss of competitiveness.

Suggested Citation

  • Arnoldo López-Marmolejo & Carlos Vladimir Rodríguez-Caballero & Daniel Ventosa-Santaulà ria, 2021. "Remittances at record highs in Latin America: Time to revisit the Dutch disease," Economics Bulletin, AccessEcon, vol. 41(3), pages 2133-2146.
    • Handle: RePEc:ebl:ecbull:eb-21-00615
    as

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    References listed on IDEAS

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    Cited by:

    1. Rodríguez-Caballero, Carlos Vladimir, 2022. "Energy consumption and GDP: a panel data analysis with multi-level cross-sectional dependence," Econometrics and Statistics, Elsevier, vol. 23(C), pages 128-146.

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    More about this item

    Keywords

    Remittances; exchange rate; Dutch disease; Latin America;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • F2 - International Economics - - International Factor Movements and International Business

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