Abstract
Remittances are private monetary transfers yet the rapidly growing literature on the subject seems to forget their monetary nature. The critical questions involved turn on whether these flows are inflationary or not and whether or not they generate relative price changes, causing a reallocation of domestic resources. This study employs a reduced-form VAR model to estimate the inflation’s response to a positive shock to the remittance. For this purpose, we apply the model suggested by Ball et al (2009). We use a quarterly data set from 1th quarter 1996 to 3th quarter 2012. Overall, we find that there exists a positive effect of remittance on inflation in Vietnam, and its effect lasts for three quarters.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
