Abstract
The objective of this study is to analyze the asymmetrical effects between the real exchange rate and poverty in some Maghreb countries through the remittances channel and the informal sector channel. We aim at answering the following question: to what extent does the variation of the real exchange rate contribute to explain the evolution of poverty through the channels of remittances and the informal sector? To do so, we applied the NARDL technique on data for three countries (Algeria, Tunisia, and the Maghreb) over the period from 1980 to 2018. The results show that real exchange rate depreciations have a larger positive effect on poverty through remittances. The results are expected to be of considerable importance for developing countries in designing exchange rate and inflation policies that affect the poverty levels of their populations through the remittance mechanism and the size of the informal sector.
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