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Emigrants’ Remittances and Dutch Disease in Cape Verde

Bourdet, Yves LU and Falck, Hans LU (2006) In International Economic Journal 20(3). p.267-284
Abstract
Emigrants remittances have increased rapidly over the past two decades. While earlier studies have focused on their microeconomic effect on incomes and poverty in recipient countries, the present study concentrates on the macroeconomic impact of remittances on the real exchange rate in Cape Verde. A main conclusion is that remittances give rise to a sort of Dutch Disease effect and thereby have an adverse effect on the competitiveness of the tradable sector. The magnitude of this effect in Cape Verde is not that large, however. The changing orientation of official aid to more growth-oriented aid, combined with a more export-oriented domestic policy, has contributed to limiting the adverse impact of emigrants remittances on the... (More)
Emigrants remittances have increased rapidly over the past two decades. While earlier studies have focused on their microeconomic effect on incomes and poverty in recipient countries, the present study concentrates on the macroeconomic impact of remittances on the real exchange rate in Cape Verde. A main conclusion is that remittances give rise to a sort of Dutch Disease effect and thereby have an adverse effect on the competitiveness of the tradable sector. The magnitude of this effect in Cape Verde is not that large, however. The changing orientation of official aid to more growth-oriented aid, combined with a more export-oriented domestic policy, has contributed to limiting the adverse impact of emigrants remittances on the competitiveness of the Cape Verdean economy. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
International Economic Journal
volume
20
issue
3
pages
267 - 284
publisher
Routledge
DOI
10.1080/10168730600879323
language
English
LU publication?
yes
id
8d9c3a82-cbfc-4ac0-9bc5-7bf58a69b742 (old id 1715386)
date added to LUP
2010-12-29 12:28:33
date last changed
2016-09-30 05:54:32
@misc{8d9c3a82-cbfc-4ac0-9bc5-7bf58a69b742,
  abstract     = {Emigrants remittances have increased rapidly over the past two decades. While earlier studies have focused on their microeconomic effect on incomes and poverty in recipient countries, the present study concentrates on the macroeconomic impact of remittances on the real exchange rate in Cape Verde. A main conclusion is that remittances give rise to a sort of Dutch Disease effect and thereby have an adverse effect on the competitiveness of the tradable sector. The magnitude of this effect in Cape Verde is not that large, however. The changing orientation of official aid to more growth-oriented aid, combined with a more export-oriented domestic policy, has contributed to limiting the adverse impact of emigrants remittances on the competitiveness of the Cape Verdean economy.},
  author       = {Bourdet, Yves and Falck, Hans},
  language     = {eng},
  number       = {3},
  pages        = {267--284},
  publisher    = {ARRAY(0x9108358)},
  series       = {International Economic Journal},
  title        = {Emigrants’ Remittances and Dutch Disease in Cape Verde},
  url          = {http://dx.doi.org/10.1080/10168730600879323},
  volume       = {20},
  year         = {2006},
}