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Migrants’ remittances and Dutch disease: evidence from Egypt

Article

Last updated: 28 Dec 2024

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Abstract

As a result of the inflow of foreign currency into an economy, an appreciation of the currency of the recipient country will occur. This paper aims to study the Dutch Disease and its relation with Migrants' remittances in Egypt using the ARDL model in the short run and long run using the error correction model. The data covers the period from 1980 to 2020 in Egypt by examining some variables as such migrants' remittances, real effective exchange rate, trade openness, and interest rates. The results show the significance of migrants' remittances on the real effective exchange rate (REER) only in the long run. Thus there is a negative relation between REER and these remittances and a positive relationship with real GDP per capita. This confirms the existence of the short-run and long-run relationship between them and the existence of Dutch disease in Egypt. Although there are relationships between REER and other variables, remittances are significant only in the short run rather than in the long run.

DOI

10.21608/psej.2022.149937.1014

Keywords

exchange rate, migrants’ remittances, Dutch Disease

Authors

First Name

Mai

Last Name

Yasser

MiddleName

-

Affiliation

economics, faculty of management sciences, October university for modern sciences and arts

Email

myasser@msa.edu.eg

City

6 october

Orcid

0000-0002-2067-8113

Volume

2

Article Issue

3

Related Issue

37646

Issue Date

2022-10-01

Receive Date

2022-07-18

Publish Date

2022-10-01

Page Start

302

Page End

330

Print ISSN

2805-3028

Online ISSN

2805-3036

Link

https://psej.journals.ekb.eg/article_269899.html

Detail API

https://psej.journals.ekb.eg/service?article_code=269899

Order

269,899

Type

المقالة الأصلية

Type Code

2,110

Publication Type

Journal

Publication Title

مجلة الدراسات السياسية والاقتصادية

Publication Link

https://psej.journals.ekb.eg/

MainTitle

Migrants’ remittances and Dutch disease: evidence from Egypt

Details

Type

Article

Created At

23 Jan 2023