Workers'' remittances have been playing an increasingly important role in the balance of payments of many countries and can significantly contribute to the strength of their external positions. Assessing the likely stability of remittance flows could be a valuable input to the analysis of their...

This paper provides a model on how altruism, ""attachment"" to the home country, and portfolio diversification may act as potential motives behind workers'' remittances. It shows that the level of workers'' remittances depends on how great are their degrees of altruism and ""attachment"" to...

This paper examines the relationship between fiscal policy and the current account, drawing on a larger country sample than in previous studies and using panel regressions, vector autoregressions, and an analysis of large fiscal and external adjustments. On average, a strengthening in the fiscal...