Abstract
In this paper,we investigate the effect of net oil trading position on remittance flows through income variation of 55 developing countries over the 1986-2012 period. In doing so,we take advantage of the persistent response of income to world oil price shocks and instrument income by the interaction term of oil prices with national net oil trade balances. Our results show that,on average, countries with a larger net oil trade balance attract a larger amount of remittances after an increase in global oil prices. In addition, most remittance flows to developing countries are found to be associated with a compensatory motive except for net oil exporters where an investment motive prevails.
Original language | English |
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Number of pages | 25 |
Publication status | Published - 2017 |
Event | Royal Economic Society Conference - University of Bristol’s campus in Clifton, Bristol, United Kingdom Duration: 10 Apr 2017 → 12 Apr 2017 https://www.econbiz.de/events/event/2017-royal-economic-society-annual-conference/10011487377 (Brief outline of conference) |
Conference
Conference | Royal Economic Society Conference |
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Country/Territory | United Kingdom |
City | Bristol |
Period | 10/04/17 → 12/04/17 |
Other | A1 - General Economics |
Internet address |
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Keywords
- Remittances
- permanent income shocks
- oil prices