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The impact of natural disasters on remittances to low- and middle-income countries

Author

Listed:
  • Giulia Bettin

    (Universit… Politecnica delle Marche, MoFiR)

  • Alberto Zazzaro

    (Universit… di Napoli Federico II, Universit… Politecnica delle Marche, MoFiR & CSEF)

Abstract
In this paper, we offer novel empirical evidence on the impact of natural disasters on remittance flows towards low- and middle-income countries. We consider a panel of 98 countries over the period 1990-2010. Our findings show that remittances increase after a disaster, thus contributing ex post to the reconstruction process. At the same time, we find that remittances play a key role in terms of ex ante risk preparedness for those countries that experienced more disruptive events in the past. Finally, when taking into account the interaction with the level of development of the local financial sector, remittances seem to substitute for less efficient financial systems both in terms of ex post response to disasters and in terms of ex ante risk management strategy.

Suggested Citation

  • Giulia Bettin & Alberto Zazzaro, 2016. "The impact of natural disasters on remittances to low- and middle-income countries," Mo.Fi.R. Working Papers 120, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
  • Handle: RePEc:anc:wmofir:120
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    Cited by:

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    5. Immaculate Machasio & Peter Tillmann, 2021. "Remittance Flows and U.S. Monetary Policy," MAGKS Papers on Economics 202140, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
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    7. Quy Ta & Yothin Jinjarak & Ilan Noy, 2022. "“How Do Shocks Affect International Reserves? A Quasi-Experiment of Earthquakes”," Open Economies Review, Springer, vol. 33(5), pages 945-971, November.
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    9. Zubin Deyal, 2024. "Weathering the storm: investigating the role of remittances as immediate disaster relief in developing countries," CSAE Working Paper Series 2024-01, Centre for the Study of African Economies, University of Oxford.
    10. Farid Makhlouf & Refk Selmi, 2023. ""From Aspirations for Climate Action to the Reality of Climate Disasters": Can Migrants Play Key Role in Disaster Response?," Working Papers hal-04137400, HAL.
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    12. Kim, Kijin & Ardaniel, Zemma & Kikkawa, Aiko & Endriga, Benjamin, 2022. "Bilateral Remittance Inflows to Asia and the Pacific: Countercyclicality and Motivations to Remit," ADBI Working Papers 1315, Asian Development Bank Institute.
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    15. Emilio Fernández Corugedo & Andres Gonzalez & Mr. Alejandro D Guerson, 2023. "The Macroeconomic Returns of Investment in Resilience to Natural Disasters under Climate Change: A DSGE Approach," IMF Working Papers 2023/138, International Monetary Fund.
    16. Young Seok Song & Moo Jong Park, 2019. "Development of Damage Prediction Formula for Natural Disasters Considering Economic Indicators," Sustainability, MDPI, vol. 11(3), pages 1-22, February.
    17. Nabil Daher, 2024. "Is growth at risk from natural disasters? Evidence from quantile local projections," Working Papers 2024.8, International Network for Economic Research - INFER.
    18. Nabil Daher, 2024. "Is growth at risk from natural disasters? Evidence from quantile local projections," French Stata Users' Group Meetings 2024 12, Stata Users Group.
    19. Ryota Nakatani, 2019. "A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change," IMF Working Papers 2019/186, International Monetary Fund.
    20. Immaculate Machasio & Peter Tillmann, 2023. "Remittance flows and US monetary policy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(3), pages 545-561, August.
    21. Mack, Elizabeth A. & Sauls, Laura Aileen & Jokisch, Brad D. & Nolte, Kerstin & Schmook, Birgit & He, Yifan & Radel, Claudia & Allington, Ginger R.H. & Kelley, Lisa C. & Scott, Christian Kelly & Leisz,, 2023. "Remittances and land change: A systematic review," World Development, Elsevier, vol. 168(C).

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    More about this item

    Keywords

    international migration; migrants' remittances; natural disasters;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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