Are remittances an instrument of stabilization and funding in the euro area?

Data
2016
Autores
Correia, Leonida Amaral Tomas
Martins, Patricia Sofia Figueiredo
Título da revista
ISSN da revista
Título do Volume
Editora
Projetos de investigação
Unidades organizacionais
Fascículo
Resumo
In this study, we explore the specific question of the counter cyclicality of remittances in the euro area, namely, if they could be used to stabilize the business cycle and as an additional source of external financing. This research uses data for 13 euro area countries in the period 2004–2013. For whole of the sample, our two hypotheses concerning stabilization and external financing are rejected, but Lithuania and Greece are outliers. Remittances seem to have had a macroeconomic stabilizing effect on Lithuania and to have mitigated in part the liquidity problems that Greece has faced since the sovereign debt crisis.
Descrição
Palavras-chave
remittances , business cycles , procyclical , countercyclical , euro area
Citação