Working Papers

Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries

No.

1294

Date

February, 2019

Topic

F4. Macroeconomic Aspects of International Trade and Finance

F2. International Factor Movements and International Business

O1. Economic Development

This paper examines the causality between remittances (REMs) and financial sector development (FD) in MENA countries. We seek to fill a gap in the extant literature by exploring the inward REMs-financial development nexus across the MENA region via the bootstrap rolling Granger non-causality approach. To identify the changes in the interplay among variables, we apply a series of time-varying rolling window tests based on annual-frequency data from 1980 to 2015. Our findings reveal that any shock (demand, supply, or policy-induced) will have permanent long-run effects on selected indicators. The analysis also point out episodes of directional predictability from FD to REM inflows. However, the results evidenced significant windows of directional predictability from inward REMs to financial development.
Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries

Research Fellows

Ilham Haouas

Associate Professor of Economics and Finance, Abu...

Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries

Authors

Naceur Kheraief

Business School of Tunis

Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries

Authors

Arusha Cooray

University of New South Wales, Sydney, Australia

Time-Varying Casual Nexuses Between Remittances and Financial Development in Some MENA Countries

Authors

Syed Jawad Hussain Shahzad

Montpellier Business School, Montpellier France