Remittances can cause volatility if concentrated – IMF paper


Remittances can have important benefits in stabilising recipient economies, but the benefits may disappear when they are very geographically concentrated, a paper published by the International Monetary Fund finds.

In Remittance concentration and volatility: evidence from 72 developing countries, Amr Hosny tests the impact of remittance flows on a wide range of economic variables, finding large remittances “can be stabilising on average”.

“Importantly, however, large remittances when combined

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