Remittances And The Real Exchange Rate

Existing empirical evidence indicates that remittances have a positive impact on a good number of development indicators of recipient countries. Yet when flows are too large relative to the size of the recipient economies, as those observed in a number of Latin American countries, they may also brin...

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Main Author: Bussolo, Maurizio
Other Authors: Lopez, Humberto, Molina, Luis
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2007, 2007
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Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
Summary:Existing empirical evidence indicates that remittances have a positive impact on a good number of development indicators of recipient countries. Yet when flows are too large relative to the size of the recipient economies, as those observed in a number of Latin American countries, they may also bring a number of undesired problems. Among those probably the most feared in this context is the Dutch Disease. This paper explores the empirical evidence regarding the impact of remittances on the real exchange rate. The findings suggest that remittances indeed appear to lead to a significant real exchange rate appreciation. The paper also explores policy options that may somewhat offset the observed effect
Physical Description:Online-Ressource (1 online resource (33 p.))