Output Growth Volatility and Remittances

Output Growth Volatility and Remittances

Bibliographic Data

ID9726596
AuthorsMATTEO BUGAMELLI (Bank of Italy), FRANCESCO PATERNÒ, Francesco Paternï (Bank of Italy)
Year2011
Volume78
Issue311
Pages480-500
Publication date2011-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0335.2009.00838.x
OpenAlexW3121982094
LanguageEN
Citations received6
References cited18

Output growth volatility has negative effects on growth, poverty and welfare. The empirical literature has therefore searched for country-specific factors affecting volatility and focused on financial development, policy distortions, trade and financial openness. Using the same empirical framework, we focus on migrants' remittances that can help to reduce output growth volatility thanks to their size, stability and low procyclicality. In a cross-section of about 60 emerging and developing economies over the period 1980–2003, we show that indeed remittances are negatively correlated to output growth volatility. Instrumental variable estimation suggests that the effect of remittances is of a causal nature

Econometrics · Economics · Globalization · Instrumental variable · Macroeconomics · Monetary economics · Openness to experience · Volatility (finance) · Economic Growth and Development · Economic Growth and Productivity · Migration and Labor Dynamics

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