Asymmetric effect of real exchange rate changes on poverty
The role of remittances and the informal sector
Bibliographic Data
| ID | 22110701 |
|---|---|
| Authors | Ramzi Farhani (0000-0003-1014-8634, University of Sousse), Amal Aloui (0009-0006-3953-1038, University of Sousse), Khaleel Mohsin (0000-0002-0248-6732, University of Sousse, corresponding author) |
| Year | 2023 |
| Volume | 9 |
| Issue | 1 |
| Publication date | 2023-12-31 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Cogent Social Sciences (JOURNAL) |
| Journal identifiers | ISSN: 2331-1886 • E-ISSN: 2331-1886 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/23311886.2023.2198782 |
| OpenAlex | W4362729922 |
| Language | EN |
| References cited | 33 |
The objective of this study is to analyze the asymmetrical effects between the real exchange rate and poverty in some Maghreb countries through the remittances channel and the informal sector channel. We aim at answering the following question: to what extent does the variation of the real exchange rate contribute to explain the evolution of poverty through the channels of remittances and the informal sector? To do so, we applied the NARDL technique on data for three countries (Algeria, Tunisia, and the Maghreb) over the period from 1980 to 2018. The results show that real exchange rate depreciations have a larger positive effect on poverty through remittances. The results are expected to be of considerable importance for developing countries in designing exchange rate and inflation policies that affect the poverty levels of their populations through the remittance mechanism and the size of the informal sector
Developing country · Development economics · Economic growth · Economics · Effective exchange rate · Exchange rate · Informal sector · Monetary economics · Poverty · Remittance · Transmission channel · Economic Growth and Development · Fiscal Policy and Economic Growth · Taxation and Compliance Studies
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| Citation velocity | historical |
|---|---|
| Highly cited | No |