Oil trade balance, income and remittances: evidence from developing countries

Wai Poon, Thanh Le

    Research output: Contribution to conferencePaper


    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 languageEnglish
    Number of pages25
    Publication statusPublished - 2017
    EventRoyal Economic Society Conference - University of Bristol’s campus in Clifton, Bristol, United Kingdom
    Duration: 10 Apr 201712 Apr 2017
    https://www.econbiz.de/events/event/2017-royal-economic-society-annual-conference/10011487377 (Brief outline of conference)


    ConferenceRoyal Economic Society Conference
    Country/TerritoryUnited Kingdom
    OtherA1 - General Economics
    Internet address


    • Remittances
    • permanent income shocks
    • oil prices


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