IDEAS home Printed from https://ideas.repec.org/a/mve/journl/v40y2014i1p31-46.html
   My bibliography  Save this article

Evidence on the Linkages between Remittances and the Macroeconomy

Author

Listed:
  • Nazneen Ahmad

    (Weber State University)

  • Joseph J. French

    (University of Northern Colorado)

Abstract

This paper analyzes the linkages between remittances, consumption, investment, and GDP for the small open economy of the Philippines. Taking advantage of the superior remittance reporting of this archipelago nation, we document that remittances share a long-run relationship with consumption, investment, and GDP. Our results show that remittances are useful for forecasting investment, consumption, and GDP. While an innovation to remittances do not contribute to the variance of aggregate investment, over 13% of the variance of consumption is explained by an innovation to remittances. Furthermore, an innovation to remittances impacts consumption and GDP positively. Overall our findings suggest that remittances impact the variability of GDP via the consumption channel.

Suggested Citation

  • Nazneen Ahmad & Joseph J. French, 2014. "Evidence on the Linkages between Remittances and the Macroeconomy," Journal of Economic Insight, Missouri Valley Economic Association, vol. 40(1), pages 31-46.
  • Handle: RePEc:mve:journl:v:40:y:2014:i:1:p:31-46
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lillo, Felipe & García, Leidy & Santander, Valentín, 2017. "Dynamics of global remittances: A graph-based analysis," Mathematical Social Sciences, Elsevier, vol. 87(C), pages 64-71.

    More about this item

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

    Statistics

    Access and download statistics

    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:mve:journl:v:40:y:2014:i:1:p:31-46. 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: Cullen Goenner (email available below). General contact details of provider: https://edirc.repec.org/data/mveaaea.html .

    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.