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Migrants' Remittances and the Dutch Disease Phenomenon in Developing Countries
Title statement Migrants' Remittances and the Dutch Disease Phenomenon in Developing Countries [rukopis] / Lela Kankadze Additional Variant Titles Migrants' Remittances and the Dutch Disease Phenomenon in Developing Countries Personal name Kankadze, Lela, (dissertant) Translated title Migrants' Remittances and the Dutch Disease Phenomenon in Developing Countries Issue data 2020 Phys.des. iv p., 60 p. : grafy, tab. + One CD which includes raw datasets, calculations, STATA .dta and .do files Note Ved. práce Gianni Vaggi Oponent Catarina Braga Another responsib. Vaggi, Gianni, (thesis advisor) Braga, Catarina, (opponent) Another responsib. Univerzita Palackého. Katedra rozvojových studií (degree grantor) Keywords Remittances * Dutch disease * Georgia * RER * Cointegration * VECM * Remittances * Dutch disease * Georgia * RER * Cointegration * VECM Form, Genre diplomové práce master's theses UDC (043)378.2 Country Česko Language angličtina Document kind PUBLIKAČNÍ ČINNOST Title Mgr. Degree program Navazující Degree program Geography Degreee discipline International Development Studies book
Kvalifikační práce Downloaded Size datum zpřístupnění 00266249-698551672.pdf 47 3 MB 08.06.2020 Posudek Typ posudku 00266249-ved-448853257.pdf Posudek vedoucího 00266249-opon-898987222.pdf Posudek oponenta Ostatní přílohy Size Popis 00266249-other-490363459.do 2.8 KB 00266249-other-577502183.dta 6.4 KB
Along with the rising importance of remittances as the major source of external financing for low- and middle-income countries, the concern of its macroeconomic consequences has also increased over the last two decades. As economic theory suggests, remittances are positively correlated with the real exchange rate (RER) appreciation and the consequent loss of external competitiveness, leading to Dutch disease effects in recipient countries. This thesis focuses on the case of Georgia, a small open economy with high remittances-to-GDP ratio, and checks whether Georgia's RER has appreciated as a result of remittance inflows, consequently harming the external competitiveness. For this purpose, the research employs the Johansen cointegration and Vector Error Correction Model (VECM) estimation technique for annual data from 1997 to 2018. The main finding from both short- and long-run models suggests that remittances have no significant impact on the RER, thus rejecting the remittance-induced Dutch disease hypothesis for Georgia. This finding is further supported by Impulse Response Functions (IRF). On the other hand, other international transfers, FDI and ODA jointly depreciate the REER in the short run, but have a reverse impact in the long run, appreciating the domestic currency and possibly contributing to the deterioration of Georgia's trade competitiveness.Along with the rising importance of remittances as the major source of external financing for low- and middle-income countries, the concern of its macroeconomic consequences has also increased over the last two decades. As economic theory suggests, remittances are positively correlated with the real exchange rate (RER) appreciation and the consequent loss of external competitiveness, leading to Dutch disease effects in recipient countries. This thesis focuses on the case of Georgia, a small open economy with high remittances-to-GDP ratio, and checks whether Georgia's RER has appreciated as a result of remittance inflows, consequently harming the external competitiveness. For this purpose, the research employs the Johansen cointegration and Vector Error Correction Model (VECM) estimation technique for annual data from 1997 to 2018. The main finding from both short- and long-run models suggests that remittances have no significant impact on the RER, thus rejecting the remittance-induced Dutch disease hypothesis for Georgia. This finding is further supported by Impulse Response Functions (IRF). On the other hand, other international transfers, FDI and ODA jointly depreciate the REER in the short run, but have a reverse impact in the long run, appreciating the domestic currency and possibly contributing to the deterioration of Georgia's trade competitiveness.
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