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Remittances provide resilience against disasters in Africa

Author

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  • Naudé, Wim

    (UNU-MERIT/MGSoG, Maastricht University)

  • Bezuidenhout, Henri

    (North-West University, Potchefstroom, South Africa)

Abstract

How responsive are remittances to various disasters, both natural and human-made? And would remittances be affected by systemic financial crises (such as the 2008/09 financial crisis)? Using panel data on 23 Sub-Saharan African (SSA) countries over the period 1980 to 2007, we find that remittances are slow to respond to natural disasters, unresponsive to outbreaks of conflict, and will decline, albeit slowly, after a global financial crisis only to the extent that the crisis affects incomes, migration stocks, exchange rates, and the banking system. The relative persistence of remittances suggests that it is a good bulwark against natural disasters and global financial crises in SSA.

Suggested Citation

  • Naudé, Wim & Bezuidenhout, Henri, 2012. "Remittances provide resilience against disasters in Africa," MERIT Working Papers 2012-026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2012026
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    File URL: https://unu-merit.nl/publications/wppdf/2012/wp2012-026.pdf
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    References listed on IDEAS

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    3. Giulia Bettin & Alberto Zazzaro, 2018. "The Impact of Natural Disasters on Remittances to Low- and Middle-Income Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 54(3), pages 481-500, March.

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    More about this item

    Keywords

    remittances; migration; disasters; global financial crisis; Africa;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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