Open AccessRemittances and exchange rate - Empirical evidence from emerging economies
Author(s) -
Canh Phuc Nguyen
Publication year - 2016
Publication title -
khoa học công nghệ
Language(s) - English
Resource type - Journals
ISSN - 1859-0128
DOI - 10.32508/stdj.v19i1.526
Subject(s) - exchange rate , emerging markets , economics , balance of payments , remittance , monetary economics , inflation (cosmology) , interest rate , international economics , financial crisis , panel data , macroeconomics , econometrics , physics , economic growth , theoretical physics
The exchange rate plays an important role to trade, investment and macroeconomic risks of open economies. There are many factors that affect the exchange rate such as inflation, interest rates, balance of payments where remittance flows receive more and more attention of economists due to their increase in their values, particularly in emerging economies. This study uses data from 21 countries which are classified as emerging markets in the period between 2001 and 2013 to investigate the impacts of remittances on exchange rate. Through panel data estimations, we found that remittances increase the value of the local currencies, which is not altered by the 2008 global financial crisis.