IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v14y2024i6p757-775.html
   My bibliography  Save this article

Dynamic effects of foreign remittance volatility in low-income SADC countries

Author

Listed:
  • Kuziva Mamvura
  • Mabutho Sibanda
  • Rajendra Rajaram

Abstract

This study investigates the impact of remittance volatility in low-income countries in the Southern African Development Community (SADC) bloc. Employing a panel vector autoregressive (P-VAR) model with quarterly data that spans 2000Q1 to 2019Q4, the findings reveal that global shocks are rapidly transmitted to the domestic economy and not vice versa. Shocks in remittance volatility significantly impact domestic interest rates and consumer prices. The study further reveals that net remittance volatility impacts positively on real gross domestic product (GDP) and money supply in these countries. Therefore, in order to achieve stable and constant remittance flows, policymakers should adopt effective programs that lead to financial growth, and price and interest rate stability to encourage remittances through formal channels. Given the scarcity of macro-financial studies on the region, this article provides meaningful empirical evidence on the dynamic effects of foreign remittance volatility in low-income SADC countries.

Suggested Citation

  • Kuziva Mamvura & Mabutho Sibanda & Rajendra Rajaram, 2024. "Dynamic effects of foreign remittance volatility in low-income SADC countries," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 14(6), pages 757-775.
    • Handle: RePEc:ids:afasfa:v:14:y:2024:i:6:p:757-775
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=142116
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:14:y:2024:i:6:p:757-775. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.