Workers' remittances represent a sizeable component of international trade flows in goods and services. The paper tries to assess to what extent workers remittances are responsive to key macroeconomic variables. We first develop a simple model of altruistic transfers and show that the real exchange
โฆ LIBER โฆ
Workers remittances and the real exchange rate
โ Scribed by Faini, Riccardo (author)
- Publisher
- Springer Nature
- Year
- 1994
- Tongue
- English
- Weight
- 729 KB
- Volume
- 7
- Category
- Article
- ISSN
- 0933-1433
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## Abstract As the real exchange rate of developing countries is especially vulnerable to stochastic events, standard unit root tests do not capture such events adequately. Using a Markov switching extension of the ADF test, which incorporates stochastic regime switching, we address the issue of re