Narrow Your Choices

Refine By Type

Refine By Countries

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Browse

You are looking at 1 - 1 of 1 items for :

  • Macroeconomics and Monetary Economics x
  • Burkina Faso x
  • International Economics x
  • Mathematical and Quantitative Methods x
  • Business Fluctuations; Cycles x
  • Economic growth x
  • Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) x
Clear All
Cover IMF Working Papers
Remittances and Macroeconomic Volatility in African Countries
Ahmat Jidoud
This paper investigates the channels through which remittances affect macroeconomic volatility in African countries using a dynamic stochastic general equilibrium (DSGE) model augmented with financial frictions. Empirical results indicate that remittances—as a share of GDP—have a significant smoothing impact on output volatility but their impact on consumption volatility is somewhat small. Furthermore, remittances are found to absorb a substantial amount of GDP shocks in these countries. An investigation of the theoretical channels shows that the stabilization impact of remittances essentially hinges on two channels: (i) the size of the negative wealth effect on labor supply induced by remittances and, (ii) the strength of financial frictions and the ability of remittances to alleviate these frictions.
Keywords:
WP; business cycle; risk premium; borrowing cost; interest rate; Macroeconomic Volatility; Remittances; African Economies; Financial Frictions; consumption volatility; countercyclical remittance; remittance flow; remittances channel; savings decision; effect of remittance; volatility decrease; consumption fluctuation; Consumption; Labor supply; Business cycles; Financial sector development; Africa