The Effect of OFW remittances on the trade balance in the Philippines through the real exchange rate channel

Date of Publication

2006

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Applied Economics

College

Ramon V. Del Rosario College of Business

Department/Unit

Economics

Honor/Award

Awarded as best thesis, 2006

Defense Panel Member

Myrna S. Austria
Ponciano S. Intal, Jr.
Tereso S. Tullao, Jr.

Abstract/Summary

Remittances sent by overseas Filipino workers have been one of the major sources of foreign exchange and income for the Philippine economy. Utilizing the Dutch disease theory, this paper examines the impact of remittance inflows on the Philippine real exchange rate. The impact of real exchange rate fluctuations on the Philippine trade balance is also examined. Based on quarterly data for the period 1991 to 2005, the results of the study reveal that for the case of the Philippines, an increase in remittance inflows leads to an appreciation of the real exchange rate, as predicted by the Dutch disease theory. Furthermore, using a cointegrating vector error correction model, we also find that an appreciation of the real exchange rate leads to the deterioration of the trade balance.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU14320

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

134 leaves : ill. ; 28 cm.

Keywords

Emigrant remittances--Philippines; Foreign exchange rates--Philippines; Balance of trade--Philippines; Filipinos--Employment--Foreign countries

This document is currently not available here.

Share

COinS