Push or Pull? The Determinants of Remittances to Egypt

Al-Mashat, Rania; Billmeier, Andreas

doi:10.1515/1475-3693.1429

Cited by 7 publications

(17 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This result indicates that a 1 per cent depreciation in Indian Rupee is associated with a 1.31 per cent increase in remittances to India, supporting the wealth effect. Moreover, this result coincides with the results of Singh, (), Al‐Mashat and Billmeier, (), ILO (), Makhlouf and Kasmaoui (), and Abbas et al, ().…”

Section: Resultssupporting

confidence: 91%

“…Long‐run dynamics are reported in Panel D. The estimated long‐run coefficients of

o i l p_{t}^{+}

and

o i l p_{t}^{-}

are 0.526 and 0.964, respectively, and statistically significant at the 1 per cent level. The coefficient of

o i l p_{t}^{+}

indicates that a 1 per cent increase in the oil prices is associated with a 0.53 per cent increase in remittances and consistent with the findings of Singh (), Al‐Mashat and Billmeier (), ILO (), Makhlouf and Kasmaoui (), and Mallick (). On the other hand, the coefficient of

o i l p_{t}^{-}

shows that a 1 per cent decrease in oil prices lead to a 0.96 per cent reduction in remittances.…”

Section: Resultssupporting

confidence: 84%

“…Similarly, using panel data, Mallick () explores the effect of changes in oil prices on the remittance inflows to eleven developing Asian countries and concludes that positive shocks to crude oil prices stimulate remittance flows to these countries. Finally, works by Al‐Mashat and Billmeier (), Singh (), ILO (), and Makhlouf and Kasmaoui (), find that an increase in oil prices is positively associated with remittance inflows to Egypt, India, Bangladesh and, Morocco, respectively. Contrary to the studies mentioned above, Gupta () and Umair and Waheed () demonstrate that the changes in oil prices do not significantly influence remittance flows to India and to Pakistan, respectively.…”

Section: Introductionmentioning

confidence: 94%

“…In the case of the wealth effect , a depreciation in the native country’s currency – an increase in the value of the each dollar earned in foreign countries in terms of local currency – increases purchase power of migrants and inducing a wealth effect in the country of origin. This, in turn, may stimulate migrant workers to send more money (self‐interest remittances) to the country of origin to buy land, house and some other durable assets (Faini, ; Singh, ; Al‐Mashat and Billmeier, ; ILO, ; and Abbas et al , ). On the other hand, if remittances are altruistically motivated or transferred to repay loans that are taken to cover the cost of migration (Lucas and Stark (), a depreciation in the home country’s currency reduces the dollar equivalence of loans denominated in domestic currency.…”

Section: Determinants Of Remittances: Theory and Literaturementioning

confidence: 99%

See 3 more Smart Citations

The asymmetric impact of oil prices on remittances: evidence from India

Akçay

Karasoy

2019

OPEC Energy Review

View full text Add to dashboard Cite

Remittances make up a sizeable part of the Indian economy. Using recently advanced non‐linear autoregressive distributed lag (NARDL) model (Shin et al, 2014), this study aims to address the asymmetric impact of oil prices on international remittances over the period 1975–2017, in the context of India. The results reveal that: (i) changes in oil prices and remittances are asymmetrically associated in both short and long run; (ii) remittances react differently to changes in oil prices: while positive movements in oil prices lead to an increase in remittances, negative movements lower remittances; (iii) compared to positive oil price shocks, negative shocks have more profound impact on remittances in the long run; (iv) exchange rate has an asymmetric effect on remittances only in the short run; (v) financial development has negative influence on remittance inflows in the long run; and (vi) GDP per capita does not have any significant impact on remittance inflows in the long run, whereas it negatively affects remittances to India in the short run.

show abstract

Section: Resultssupporting

confidence: 91%

“…Long‐run dynamics are reported in Panel D. The estimated long‐run coefficients of

o i l p_{t}^{+}

and

o i l p_{t}^{-}

are 0.526 and 0.964, respectively, and statistically significant at the 1 per cent level. The coefficient of

o i l p_{t}^{+}

o i l p_{t}^{-}

shows that a 1 per cent decrease in oil prices lead to a 0.96 per cent reduction in remittances.…”

Section: Resultssupporting

confidence: 84%

Section: Introductionmentioning

confidence: 94%

Section: Determinants Of Remittances: Theory and Literaturementioning

confidence: 99%

See 2 more Smart Citations

The asymmetric impact of oil prices on remittances: evidence from India

Akçay

Karasoy

2019

OPEC Energy Review

View full text Add to dashboard Cite

show abstract

“…They found that exchange and interest rate differentials, the levels of income in both origin and host countries and the inflation rate in the country of origin, all have significant effects on remittances. From a macroeconomic perspective, Al‐Mashat and Billmeier () examined the impact of push and pull factors on the remittances to Egypt. Their results suggested that while oil price (as a proxy for the host countries’ economic activity) and GDP growth in the country of origin promote the remittance inflows, other macroeconomic variables (exchange rate, inflation, credit to private sector and interest rate) do not significantly influence the remittance inflows.…”

Section: A Brief Literature Review On Egyptmentioning

confidence: 99%

Determinants of remittances in Egypt: Do macroeconomic instability and oil price matter?

Akçay

Karasoy

2019

International Migration

View full text Add to dashboard Cite

Emigration and resulting voluminous remittance inflows have been noticeable features of the Egyptian economy since the 1960s. The main purpose of this study is to investigate the determinants of remittances – primarily the role of both macroeconomic instability and oil price – in Egypt. Using autoregressive distributed lag (ARDL) bounds testing procedure, we estimated a remittance determination equation over the period from 1980 to 2015 and found that: (1) macroeconomic instability in Egypt and increases in international oil prices promote remittances; (2) GDP growth rate in the host countries and depreciation of domestic currency spur remittances; (3) financial development is inversely related to remittances, implying that remittances and financial development are substitutes; (4) GDP growth in the home country is not significantly associated with remittances.

show abstract

Examining the asymmetric effects of oil price shocks on remittances inflows: evidence from Nigeria

Enisan

Ojo

2021

SN Bus Econ

View full text Add to dashboard Cite

This paper examines the asymmetric impact of oil prices on remittance inflows in Nigeria based on annual data over 1981-2018. The study employs the nonlinear autoregressive distributed lag approach, which allows testing the short-and long-run asymmetric response of remittances inflows to positive and negative innovations in oil prices. The results confirm a long-run relationship between remittance inflows, exchange rate, misery index, gross domestic product per capita, and oil prices. The results show that changes in oil price have an asymmetric effect on remittance inflows in the short run but not in the long run. Moreover, exchange rate appreciation and depreciation have different impact on remittances inflows in both the short and long run. Exchange rate depreciation hurts remittance inflows. GDP per capita harms remittances inflows not only in the short run but also in the long run. Nigerian authorities implement necessary measures to enhance the efficiency of migration process and ensure appropriate exchange rate value.

show abstract

Push or Pull? The Determinants of Remittances to Egypt

Cited by 7 publications

References 0 publications

The asymmetric impact of oil prices on remittances: evidence from India

The asymmetric impact of oil prices on remittances: evidence from India

Determinants of remittances in Egypt: Do macroeconomic instability and oil price matter?

Examining the asymmetric effects of oil price shocks on remittances inflows: evidence from Nigeria

Contact Info

Product

Resources

About