Remittances and the Dutch Disease: Evidence from the Republic of Moldova |
| |
Authors: | Katsuya Ito |
| |
Institution: | Department of Commerce, Fukuoka University, Fukuoka, Japan |
| |
Abstract: | This paper analyzes the linkage between exports, real effective exchange rates, and workers’ remittances in the Republic of Moldova based on impulse response functions through a vector autoregressive model. We find that an inflow of remittances leads to an appreciation of real exchange rate and a decline of exports, but the magnitude is small. Another finding is that the exchange rate appreciation does not affect remittance transfers for the first three-quarters. |
| |
Keywords: | Moldova remittances VAR |
|
|