Hassan, Gazi and Holmes, Mark (2012): Remittances and the real effective exchange rate.
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We examine the long-run relationship between remittances and the real exchange rate for less developed countries using a panel cointegration approach. We employ an innovative method for the measurement of the multilateral real effective exchange rate and we focus on high remittance economies. We find a small inelastic, but significant, long-run relationship which confirms a “Dutch disease” type effect. Short-run confirmation is given by a panel error correction model. Potential asymmetries in this relationship are explored using quantile regression analysis.
|Item Type:||MPRA Paper|
|Original Title:||Remittances and the real effective exchange rate|
|Keywords:||Remittances; Real Effective Exchange Rate; Panel cointegration; Panel error correction; Quantile regression|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development
F - International Economics > F0 - General
F - International Economics > F1 - Trade
F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances
|Depositing User:||Gazi M. Hassan|
|Date Deposited:||16. Jul 2012 13:19|
|Last Modified:||16. Feb 2013 05:06|
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