THE IMPACT OF ECONOMIC SITUATION IN THE COUNTRIES RECEIVING MIGRANTS ON REMITTANCES FLOWS

  • Andrej Přívara University of Economics in Bratislava

Abstract

The studies on remittances focus mainly on their effects on the stability of households’ incomes and/or consumption patterns. The purpose of the current paper is to highlight that the volatility of remittances can have the opposite effect. We believe that the conjuncture of the countries that receive migrants also determines their money transfers and their changes are then transmitted to the economy of the migrants’ country of origin, thus increasing the instability in the latter. We believe that the volatility of remittances is higher under specific conditions, namely, when they represent a substantial part of household income and when migrants are highly concentrated in one or several countries only. Otherwise, even if one of the recipient countries is experiencing temporary economic issues, flows will be less affected since the other host countries may not be affected by such a downturn in their economy. Diversification of the diaspora is therefore crucial for the stability of remittances since the more is the number of host countries, the less likely is a sudden decline in remittances in the event of a recession in one of those countries.

Author Biography

Andrej Přívara, University of Economics in Bratislava

PhD, Assistant Professor, Department of Social Development and Labour, University of Economics in Bratislava, Slovak Republic

Research interests: international migration, EU labor market, international regulation of labor migration

References

Ahmed, F. (2012). The perils of unearned foreign income: Aid, remittances, and government survival. American Political Science Review, 106, 146-165.

Amuedo-Dorantes, C. (2010). Remittances in Small Island Developing States. Journal of Development Studies, 46 (5), 941-960.

Combes, J.-L. & Ebeke, C. (2011). Remittances and household consumption instability in developing countries. World Development, 39(7), 1076-1089.

IMF (2010). Balance of Payments and International Positions Manual. International Monetary Fund, Washington, D. C.

International Monetary Fund (2019). Report ON Development. New York

Frankel, J. A. (2009). Are bilateral remittances countercyclical? NBER Working Papers 15419, National Bureau of Economic Research, Inc.

Hakura et al. (2009). Remittances and the real effective exchange rate. MPRA Paper 40084, University Library of Munich, Germany.

Koser, K. (2009). The Impact of the Global Financial Crisis on International Migration: Lessons Learned. Rapport technique 37, International Organization for Migration.

Migration and remittances factbook (2019). Available online at: www.Knoema.com.

Ratha, D. (2005). Workers remittances: An important and stable source of external development finance. Economics Seminar Series Paper 9, Cloud State University.

Published
2020-11-30
How to Cite
Přívara, A. (2020). THE IMPACT OF ECONOMIC SITUATION IN THE COUNTRIES RECEIVING MIGRANTS ON REMITTANCES FLOWS. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (6(25), 49-55. https://doi.org/10.35678/2539-5645.6(25).2020.49-55