Matteo Bugamelli|Francesco Paternò
Do Workers’ Remittances Reduce the Probability of Current Account Reversals?
Bank of Italy|Bank of Italy
paper tests whether large cheap stable lowcyclical flows workers remittances reduce probability current account reversals recipient countries using large panel emerging developing economies find indeed case remittances get 3 gdp relationship decreasing stock international reserves higher probability current account reversals becomes less stringent iv estimation proves effect remittances current account reversals causal nature