IDEAS home Printed from https://ideas.repec.org/p/hal/cesptp/halshs-00344833.html
   My bibliography  Save this paper

When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up ?

Author

Listed:
  • Fida Karam

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

In this paper, I run a computable general equilibrium (CGE) model of the Moroccan economy to investigate the transmission channels through which remittances affect households and sectors. I give a particular attention to the investment of remittances in the real estate sector, by allowing a segmentation of the savings market. To begin with, I assess the negative impact of immigration restrictive policies and permanent migration on the future evolution of remittances. Then I ask what would be the appropriate policies to take the maximum profit from current flows. It turns out that channelling investment from real estate to productive sectors is unexpectedly harmful in terms of growth and welfare. Positive effects stem only from government ability to attract investors through an improvement in the country risk premium, and private efforts to reduce international transfer costs.

Suggested Citation

  • Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00344833, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00344833
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00344833v2
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00344833v2/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Valero-Gil, Jorge, 2008. "Remittances and the household’s expenditures on health," MPRA Paper 9572, University Library of Munich, Germany.
    2. Richter, Susan M., 2008. "The Insurance Role of Remittances on Household Credit Demand," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6261, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    4. Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up ?," Post-Print halshs-00344833, HAL.
    5. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    6. Mr. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 2004/194, International Monetary Fund.
    7. Jaime de Melo & Sherman Robinson, 2015. "Productivity and externalities: models of export-led growth," World Scientific Book Chapters, in: Modeling Developing Countries' Policies in General Equilibrium, chapter 3, pages 43-70, World Scientific Publishing Co. Pte. Ltd..
    8. Jean-Pierre Cling & Mohamed Ali Marouani & Mireille Razafindrakoto & Anne-Sophie Robilliard & Francois Roubaud, 2009. "The Distributive Impact of Vietnam's Accession to the WTO," Economie Internationale, CEPII research center, issue 118, pages 43-71.
    9. François Bourguignon & William H. Branson & Jaime de Melo, 1989. "Macroeconomic Adjustment and Income Distribution: A Macro-Micro Simulation Model," OECD Development Centre Working Papers 1, OECD Publishing.
    10. Adams, Richard H, Jr, 1998. "Remittances, Investment, and Rural Asset Accumulation in Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 47(1), pages 155-173, October.
    11. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339.
    12. Richard P.C. Brown & Eliana Jimenez, 2008. "Estimating the net effects of migration and remittances on poverty and inequality: comparison of Fiji and Tonga," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 547-571.
    13. J. Edward Taylor & George Dyer, 2009. "Migration and the Sending Economy: A Disaggregated Rural Economy-Wide Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 966-989.
    14. Maurice Schiff, 2008. "On the underestimation of migration’s income and poverty impact," Review of Economics of the Household, Springer, vol. 6(3), pages 267-284, September.
    15. Acosta, Pablo & Fajnzylber, Pablo & Lopez, J. Humberto, 2007. "The impact of remittances on poverty and human capital : evidence from Latin American household surveys," Policy Research Working Paper Series 4247, The World Bank.
    16. Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up?," Working Papers hal-00304885, HAL.
    17. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
    18. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
    19. Thomas F. Rutherford & E. Elisabet Rutstrom & David Tarr, 2014. "Morocco's free trade agreement with the EU: A quantitative assessment," World Scientific Book Chapters, in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 17, pages 405-437, World Scientific Publishing Co. Pte. Ltd..
    20. Rodriguez, Edgard R, 1998. "International Migration and Income Distribution in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 329-350, January.
    21. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
    22. Chan, Nguyen & Dung, Tran Kim & Ghosh, Madanmohan & Whalley, John, 2005. "Adjustment costs in labour markets and the distributional effects of trade liberalization: Analytics and calculations for Vietnam," Journal of Policy Modeling, Elsevier, vol. 27(9), pages 1009-1024, December.
    23. repec:dau:papers:123456789/10658 is not listed on IDEAS
    24. repec:dau:papers:123456789/4321 is not listed on IDEAS
    25. Marouani, Mohamed A. & Robalino, David A., 2008. "Assessing interactions among education, social insurance, and labor market policies in a general equilibrium framework: an application to Morocco," Policy Research Working Paper Series 4681, The World Bank.
    26. J. Taylor & T.J. Wyatt, 1996. "The shadow value of migrant remittances, income and inequality in a household‐farm economy," Journal of Development Studies, Taylor & Francis Journals, vol. 32(6), pages 899-912.
    27. Rodrigo, G. Chris & Thorbecke, Erik, 1997. "Sources of growth: A reconsideration and general equilibrium application to Indonesia," World Development, Elsevier, vol. 25(10), pages 1609-1625, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    2. repec:dau:papers:123456789/14850 is not listed on IDEAS
    3. Anda David & Mohamed Ali Marouani, 2015. "Migration and Employment Interactions in a Crisis Context: the case of Tunisia," Working Papers 20150007, UMR Développement et Sociétés, Université Paris 1 Panthéon-Sorbonne, Institut de Recherche pour le Développement.
    4. repec:dau:papers:123456789/14987 is not listed on IDEAS
    5. Fida Karam, 2011. "Trade Liberalization and the Skill Composition of Migrant Flows: the Case of Morocco," Working Papers 595, Economic Research Forum, revised 07 Jan 2011.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up?," Working Papers hal-00304885, HAL.
    2. Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up ?," Post-Print halshs-00344833, HAL.
    3. Fida Karam, 2011. "Trade Liberalization and the Skill Composition of Migrant Flows: the Case of Morocco," Working Papers 595, Economic Research Forum, revised 07 Jan 2011.
    4. repec:dau:papers:123456789/13287 is not listed on IDEAS
    5. Jamal Bouoiyour & Amal Miftah, 2014. "Household Welfare, International Migration And Children Time Allocation In Rural Morocco," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(2), pages 75-95, June.
    6. Simone Bertoli & Francesca Marchetta, 2014. "Migration, Remittances and Poverty in Ecuador," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1067-1089, August.
    7. Bettin, Giulia & Paçacı Elitok, Seçil & Straubhaar, Thomas, 2012. "Causes and consequences of the downturn in financial remittances to Turkey: A descriptive approach," Edition HWWI: Chapters, in: Paçacı Elitok, Seçil & Straubhaar, Thomas (ed.), Turkey, migration and the EU, volume 5, pages 133-166, Hamburg Institute of International Economics (HWWI).
    8. Jamal Bouoiyour & Amal Miftah, 2014. "The effects of remittances on poverty and inequality: Evidence from rural southern Morocco," Working Papers hal-01880333, HAL.
    9. Bouoiyour, Jamal & Miftah, Amal, 2014. "Les transferts de fonds réduisent-ils la pauvreté et les inégalités de revenus? Une vérification empirique à travers une enquête dans le milieu rural marocain [Remittances, Poverty and Income Inequ," MPRA Paper 57052, University Library of Munich, Germany.
    10. Jamal Bouoiyour & Amal Miftah, 2014. "The effects of remittances on poverty and inequality: Evidence from rural southern Morocco," Working Papers hal-01880333, HAL.
    11. Jamal Bouyiour & Amal Miftah, 2015. "The impact of migrant workers' remittances on the living standards of families in Morocco: A propensity score matching approach," Migration Letters, Migration Letters, vol. 12(1), pages 13-27, January.
    12. Maëlan LE GOFF & Christian EBEKE, 2009. "Why Migrants' Remittances Reduce Income Inequality in some Countries and not in Others?," Working Papers 200919, CERDI.
    13. John Gibson & David McKenzie & Steven Stillman, 2011. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1297-1318, November.
    14. Moises Neil V. Serino & Donghun Kim, 2011. "How Do International Remittances Affect Poverty In Developing Countries? A Quantile Regression Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(4), pages 17-40, December.
    15. Gharad Bryan & Shyamal Chowdhury & A. Mushfiq Mobarak, 2011. "Seasonal Migration and Risk Aversion," Working Papers id:4650, eSocialSciences.
    16. Laetitia Duval & Francois-Charles Wolff, 2010. "Remittances matter: longitudinal evidence from Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 73-97.
    17. Nong Zhu & Xubei Luo, 2014. "The Impact of migration on rural poverty and inequality: a case study in China," CIRANO Working Papers 2014s-08, CIRANO.
    18. Fida Karam & Bernard Decaluwé, 2007. "Les effets de la migration sur le chômage marocain : une analyse en équilibre général calculable statique," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00145424, HAL.
    19. Giuliano, Paola & Ruiz-Arranz, Marta, 2009. "Remittances, financial development, and growth," Journal of Development Economics, Elsevier, vol. 90(1), pages 144-152, September.
    20. repec:dau:papers:123456789/12802 is not listed on IDEAS
    21. Bernard Decaluwé & Fida Karam, 2008. "Migration Impact on Moroccan Unemployment : a Static Computable General Equilibrium Analysis," Post-Print halshs-00331322, HAL.
    22. Fida KARAM & Bernard DECALUWÉ, 2008. "Migration Impact on Moroccan Unemployment: a Static Computable General Equilibrium Analysis," EcoMod2008 23800058, EcoMod.

    More about this item

    Keywords

    Sequential dynamics; computable general equilibrium model; migration; remittances.; Dynamique séquentielle; modèle d'équilibre général calculable; transferts.; remittances;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • 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:hal:cesptp:halshs-00344833. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.