Remittances and trade balance: A new transfer problem
Remittances and trade balance: A new transfer problem
Author(s): Ram Hari RegmiSubject(s): Economy, Migration Studies
Published by: Transnational Press London
Keywords: Trade balance; remittance; transfer problem;
Summary/Abstract: Remittances are an important inflow of funds in many developing economies. These remittances relate to the classic 'transfer problem' and hence likely affect the exchange rate. In this paper, I find that remittances have a significant negative impact on trade balances and that the driving force is the exchange rate. Additionally, I find that remittance has a positive impact on trade openness, and hence decrease in the trade balance is because the growth rate of imports is higher than the growth rate of exports.
Journal: Remittances Review
- Issue Year: 7/2022
- Issue No: 1
- Page Range: 3-19
- Page Count: 17
- Language: English