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Farid Farid
 
''The impact of exchange rate policy on remittances in Morocco: A Threshold VAR analysis''
( 2014, Vol. 34 No.4 )
 
 
The aim of this paper is to study the effect of nominal exchange rate movements (MAD to EUR) on remittances in the case of Morocco. It analyses monthly data from 2005 to 2014 using a Threshold Vector Auto Regression (TVAR) model to document the impact of exchange rate policy on remittances to Morocco. The results indicate that there is one best unique threshold at Euro/Moroccan Dirham= 11.2048: under the threshold, the effect of nominal exchange rate appreciation on remittances is positive, and above the threshold the effect is negative. These empirical results provide significant implications for the Central Bank of Morocco.
 
 
Keywords: Switch regime, TVAR, Remittances, Exchange rate, Morocco
JEL:
E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
 
Manuscript Received : Jun 14 2014 Manuscript Accepted : Nov 06 2014

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