The Impact of Risk and Uncertainty On Remittances Into Latin American Economies
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Keywords

Exchange Rates
Political Risk
Latin America
Migration

How to Cite

The Impact of Risk and Uncertainty On Remittances Into Latin American Economies. (2009). Journal of Business Strategies, 26(1), 99-118. https://doi.org/10.54155/jbs.26.1.99-118

Abstract

This study investigates the effects of exchange rate uncertainty and political
risk, after controlling for the conventional macroeconomic detenninants, on remittances
transfers into eight Latin American countries during the period of 1990-2006.
The results suggest that an increase in exchange rate uncertainty reduces remittances
flows into these countries. Furthennore, an increase in political risk seems to have
a negative but statistically insignificant impact on remittances transfers. Based on
the findings of this paper, we can say that governments of the remittance receiving
countries can influence the inflow of remittances by means of adopting appropriate
macroeconomic policies to reduce exchange rate uncertainty and also by improving
their political environments.

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