| Description |
1 online resource (20 pages) : color illustrations |
| Series |
IMF working paper ; WP/14/144 |
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IMF working paper ; WP/14/144.
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| Contents |
Cover; Contents; I. Introduction; II. Theoretical Background; Figures; 1. Remittances and other Resource flows to Developing Countries; III. Empirical Framework and Data; A. Model Specification; B. Data; 2. Five Largest Recipients by Region; IV. Results; A. Baseline Estimates; 3. Remittances Trend in Low-Income Countries; 4. NPLs -- Sample Average over 2000-11; Tables; 1. Traditional Determinants of NPLs, 2000-11; 2. Effects of Remittances Inflows on NPLs, 2000-11; B. Robustness Checks; 3. Effects of Remittances Inflows on NPLs: Non-Linearity, 2000-11 |
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4. Instrumental Variable Estimates, 2000-11V. Conclusion; 5. Instrumental Variable Estimates: Non-Linearity, 2000-11; Appendix; References |
| Summary |
This paper analyzes the link between remittances inflows and nonperforming loans (NPLs) in a large sample of developing countries. Theoretical transmission channels include risk coping, exchange rate and growth impacts. Panel data estimates uncover the significant role of remittance inflows in reducing the size of NPLs in recipient economies. Econometric results also indicate a stronger marginal impact of remittances in a context of high macroeconomic instability, suggesting a significant effect of remittances on the likelihood of the private sector's credit default during shocks. These results hold even after factoring in: (i) the endogeneity of remittance inflows and, (ii) the use of an alternative estimator (panel fractional logit) aimed at dealing with bounded dependent variables. --Abstract |
| Notes |
"August 2014"--Page 2 of pdf |
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"African Department"--Page 2 of pdf |
| Bibliography |
Includes bibliographical references (pages 17-19) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed on August 21, 2014) |
| Subject |
Transfer payments -- Developing countries -- Econometric models
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Capital movements -- Developing countries -- Econometric models
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Bank loans -- Developing countries -- Econometric models
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Bank loans -- Econometric models
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Capital movements -- Econometric models
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Transfer payments -- Econometric models
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Developing countries
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| Form |
Electronic book
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| Author |
Loko, Boileau, author.
|
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Viseth, Arina, author.
|
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International Monetary Fund. African Department, issuing body.
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