IDEAS home Printed from https://ideas.repec.org/p/wbk/wboper/38066.html
   My bibliography  Save this paper

Coping with Shocks

Author

Listed:
  • World Bank

Abstract

South Asia is facing renewed challenges. The impact of the Russia-Ukraine war on food and energy prices on domestic inflation is long-lasting. Externally, countries’ current account balances deteriorate rapidly as imports rise on the back of economic recovery and rising inflation, remittances decline, and foreign capital flows out following monetary tightening in advanced economies. An economic slowdown in advanced economies and trading partners can also be a drag to the exports sector and remittances inflows, which many countries in the region depend on. These immediate challenges can translate to persistent deterrent to long-term growth and development. Higher energy prices already are changing the attitude of many countries outside the region about green transition and carbon reduction. The South Asia region is thus at a critical juncture. The theme chapter provides a deep dive into COVID-19 and migration. Migrant workers and remittances flows are important for South Asia as sources of income and means to smooth local income shocks for households, and as an important source of foreign reserves for the country. The pandemic changed the flows of migration, as some migrants had to return home and some had to stay in foreign countries due to COVID-related restrictions. The chapter studies the long-run trend of migration in the region, how COVID-19 impacted migration and remittance inflows, whether migration has (or has not) recovered, and proposes policies to address underlying problems.

Suggested Citation

  • World Bank, "undated". "Coping with Shocks," World Bank Publications - Reports 38066, The World Bank Group.
    • Handle: RePEc:wbk:wboper:38066
    as

    Download full text from publisher

    File URL: https://openknowledge.worldbank.org/bitstreams/5ce11ef4-877e-5037-8736-4b0b235ebebf/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sukhtankar, Sandip, 2017. "India’s National Rural Employment Guarantee Scheme: What Do We Really Know about the World’s Largest Workfare Program?," India Policy Forum, National Council of Applied Economic Research, vol. 13(1), pages 231-285.
    2. Bussolo,Maurizio & Kotia,Ananya & Sharma,Siddharth, 2021. "Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India," Policy Research Working Paper Series 9584, The World Bank.
    3. J. Chen & V. Mueller, 2018. "Coastal climate change, soil salinity and human migration in Bangladesh," Nature Climate Change, Nature, vol. 8(11), pages 981-985, November.
    4. Valsecchi, Michele & Durante, Ruben, 2021. "Internal migration networks and mortality in home communities: Evidence from Italy during the Covid-19 pandemic," European Economic Review, Elsevier, vol. 140(C).
    5. John Gibson & David McKenzie, 2012. "The Economic Consequences of ‘Brain Drain’ of the Best and Brightest: Microeconomic Evidence from Five Countries," Economic Journal, Royal Economic Society, vol. 122(560), pages 339-375, May.
    6. David McKenzie & John Gibson & Steven Stillman, 2010. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 913-945, June.
    7. Melanie Morten, 2019. "Temporary Migration and Endogenous Risk Sharing in Village India," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 1-46.
    8. Cai, Shu, 2020. "Migration under liquidity constraints: Evidence from randomized credit access in China," Journal of Development Economics, Elsevier, vol. 142(C).
    9. Manuela Angelucci, 2015. "Migration and Financial Constraints: Evidence from Mexico," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 224-228, March.
    10. Diane Coffey & John Papp & Dean Spears, 2015. "Short-Term Labor Migration from Rural North India: Evidence from New Survey Data," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 34(3), pages 361-380, June.
    11. Clément Imbert & John Papp, 2020. "Short-term Migration, Rural Public Works, and Urban Labor Markets: Evidence from India," Journal of the European Economic Association, European Economic Association, vol. 18(2), pages 927-963.
    12. Susmita Dasgupta & Md. Moqbul Hossain & Mainul Huq & David Wheeler, 2016. "Facing The Hungry Tide: Climate Change, Livelihood Threats, And Household Responses In Coastal Bangladesh," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-25, August.
    13. Irina Ivakhnyuk, 2020. "Coronavirus pandemic challenges migrants worldwide and in Russia," Population and Economics, ARPHA Platform, vol. 4(2), pages 49-55, April.
    14. Dasgupta, Susmita & Wheeler, David & Bandyopadhyay, Sunando & Ghosh, Santadas & Roy, Utpal, 2022. "Coastal dilemma: Climate change, public assistance and population displacement," World Development, Elsevier, vol. 150(C).
    15. repec:ecj:econjl:v:122:y:2012:i::p:339-375 is not listed on IDEAS
    16. Jasper Verschuur & Elco E Koks & Jim W Hall, 2021. "Global economic impacts of COVID-19 lockdown measures stand out in high-frequency shipping data," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-16, April.
    17. Caterina Conigliani & Valeria Costantini & Giulia Finardi, 2022. "Climate-related natural disasters and forced migration: a spatial regression analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 17(3), pages 416-439, July.
    18. V. Mueller & C. Gray & K. Kosec, 2014. "Heat stress increases long-term human migration in rural Pakistan," Nature Climate Change, Nature, vol. 4(3), pages 182-185, March.
    19. Ravi Srivastava, 2020. "Growing Precarity, Circular Migration, and the Lockdown in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(1), pages 79-86, October.
    20. Jun Rentschler & Melda Salhab & Bramka Arga Jafino, 2022. "Flood exposure and poverty in 188 countries," Nature Communications, Nature, vol. 13(1), pages 1-11, December.
    21. Gharad Bryan & Melanie Morten, 2019. "The Aggregate Productivity Effects of Internal Migration: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 2229-2268.
    22. Amer Ahmed & Laurent Bossavie, 2022. "Toward Safer and More Productive Migration for South Asia," World Bank Publications - Books, The World Bank Group, number 37444.
    Full references (including those not matched with items on IDEAS)

    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. Jules Gazeaud & Eric Mvukiyehe & Olivier Sterck, 2023. "Cash Transfers and Migration: Theory and Evidence from a Randomized Controlled Trial," The Review of Economics and Statistics, MIT Press, vol. 105(1), pages 143-157, January.
    2. Clemens, Michael A. & Mendola, Mariapia, 2020. "Migration from Developing Countries: Selection, Income Elasticity, and Simpson's Paradox," IZA Discussion Papers 13612, Institute of Labor Economics (IZA).
    3. Selod, Harris & Shilpi, Forhad, 2021. "Rural-urban migration in developing countries: Lessons from the literature," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    4. Clemens, Michael A. & Mendola, Mariapia, 2024. "Migration from developing countries: Selection, income elasticity, and Simpson’s paradox," Journal of Development Economics, Elsevier, vol. 171(C).
    5. Michael Clemens, 2022. "Do Cash Transfers Deter Migration?," Policy Papers 270, Center for Global Development.
    6. Chakraborty Tanika & Pandey Manish, 2022. "Temporary international migration, shocks and informal finance: analysis using panel data," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-19, January.
    7. Chakraborty, Tanika & Pandey, Manish, 2021. "Temporary International Migration, Shocks and Informal Insurance: Analysis using panel data," GLO Discussion Paper Series 759, Global Labor Organization (GLO).
    8. Maria Caridad Araujo & Karen Macours, 2021. "Education, Income and Mobility: Experimental Impacts of Childhood Exposure to Progresa after 20 Years," PSE Working Papers halshs-03364972, HAL.
    9. Martínez Flores, Fernanda & Milusheva, Sveta & Reichert, Arndt R. & Reitmann, Ann-Kristin, 2024. "Climate anomalies and international migration: A disaggregated analysis for West Africa," Journal of Environmental Economics and Management, Elsevier, vol. 126(C).
    10. Joseph-Simon Görlach, 2023. "Borrowing Constraints and the Dynamics of Return and Repeat Migration," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 205-243.
    11. Imbert, Clément & Papp, John, 2020. "Costs and benefits of rural-urban migration: Evidence from India," Journal of Development Economics, Elsevier, vol. 146(C).
    12. Zaveri, Esha D. & Wrenn, Douglas H. & Fisher-Vanden, Karen, 2020. "The impact of water access on short-term migration in rural India," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), April.
    13. David Lagakos, 2020. "Urban-Rural Gaps in the Developing World: Does Internal Migration Offer Opportunities?," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 174-192, Summer.
    14. Kirchberger, Martina, 2021. "Measuring internal migration," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    15. Fuchs, Andreas & Gröger, André & Heidland, Tobias & Wellner, Lukas, 2023. "The effect of foreign aid on migration: Global micro evidence from world bank projects," Kiel Working Papers 2257, Kiel Institute for the World Economy (IfW Kiel).
    16. Kleemans, Marieke, 2015. "Migration Choice under Risk and Liquidity Constraints," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 200702, Agricultural and Applied Economics Association.
    17. Marta Schoch, 2020. "Essays on political economy, inequality and development," Economics PhD Theses 0120, Department of Economics, University of Sussex Business School.
    18. Saavedra Facusse,Trinidad Berenice & Inchauste Comboni,Maria Gabriela, 2023. "Why Do People Move across State Borders ? Evidence from Mexico," Policy Research Working Paper Series 10493, The World Bank.
    19. Jules Gazeaud & Victor Stephane, 2023. "Productive Workfare? Evidence from Ethiopia's Productive Safety Net Program," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 265-290, January.
    20. Bastian, Jacob E. & Black, Dan A., 2024. "Relaxing financial constraints with tax credits and migrating out of rural and distressed America," Journal of Public Economics, Elsevier, vol. 234(C).

    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:wbk:wboper:38066. 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: Tal Ayalon (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.