The Impact of Natural Disasters on Remittances to Low- and Middle-Income Countries

30 Pages Posted: 20 Jun 2016

See all articles by Giulia Bettin

Giulia Bettin

Università Politecnica delle Marche - Department of Economics

Alberto Zazzaro

Polytechnic University of Marche - Faculty of Economics

Date Written: May 2016

Abstract

In this paper, we offer novel empirical evidence on the impact of natural disasters on remittance flows towards low- and middle-income countries. We consider a panel of 98 countries over the period 1990-2010. Our findings show that remittances increase after a disaster, thus contributing ex post to the reconstruction process. At the same time, we find that remittances play a key role in terms of ex ante risk preparedness for those countries that experienced more disruptive events in the past. Finally, when taking into account the interaction with the level of development of the local financial sector, remittances seem to substitute for less efficient financial systems both in terms of ex post response to disasters and in terms of ex ante risk management strategy.

Keywords: migrants’ remittances, international migration, natural disasters

JEL Classification: F24, F22, Q54

Suggested Citation

Bettin, Giulia and Zazzaro, Alberto, The Impact of Natural Disasters on Remittances to Low- and Middle-Income Countries (May 2016). Centro Studi Luca d'Agliano Development Studies Working Paper No. 393, Available at SSRN: https://ssrn.com/abstract=2798145 or http://dx.doi.org/10.2139/ssrn.2798145

Giulia Bettin (Contact Author)

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli 8
Ancona, 18039
Italy
+39 071 2207079 (Phone)
+39 071 2207102 (Fax)

Alberto Zazzaro

Polytechnic University of Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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