Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/166725
Authors: 
De, Supriyo
Islamaj, Ergys
Kose, M. Ayhan
Yousefi, S. Reza
Year of Publication: 
2016
Series/Report no.: 
Koç University-TÜSİAD Economic Research Forum Working Paper Series 1601
Abstract: 
This paper examines the behavior of remittances over the business cycle and their potential to act as a stabilizer during periods of high business cycle volatility. Four main findings are reported. First, in theory, the cyclical behavior of remittances depends on the motives to remit. Second, remittances are less volatile than other foreign currency flows but do not appear to systemically co-move with business cycle fluctuations. Third, remittances are relatively stable even during episodes of sharp business cycle volatility, such as those associated with sudden stops and financial crises. Finally, remittances can help support consumption stability over the business cycle.
Subjects: 
remittances
business cycles
acyclical
sudden stops
risk sharing
JEL: 
F24
F36
F41
F44
Document Type: 
Working Paper

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