UID:
edoccha_9959745958202883
Format:
1 online resource (38 pages)
ISBN:
1-5135-1148-3
,
1-5135-1150-5
Series Statement:
IMF Working Papers
Content:
We propose a simple macroeconomic model with input-output sectoral linkages based on Acemoglu et al. (2016) to quantify how changes in aggregate demand due to additional income from household’s remittances propagates through the network of input-output linkages in Sub-Saharan African countries. We first propose two network centrality measures to assess the role of some sectors as key input providers in the economy. Then, we use these measures to quantify the effect of sectoral linkages on sectoral and total output following an increase in remittances inflows. Our empirical results suggest that the effects of remittances on recipient economies increase with the degree of linkages across sectors, which is especially prominent in the case of the financial intermediation sector. Our paper contributes to the emerging macroeconomic literature on the propagation of shocks across sectors and the implications for the whole economy.
Note:
Intro -- Cover -- Contents -- 1 Introduction -- 2 Importance of remittances -- 2.1 Literature review -- 2.2 Recent trends in remittances -- 2.3 Remittances and economic growth -- 3 Model for remittances' impact -- 3.1 Definitions -- 3.2 Intuition of the result -- 4 Data -- 4.1 Eora Database -- 4.2 Remittances data -- 5 Empirical results -- 5.1 Centrality measures of the sectoral network of the economy -- 5.2 Importance of sectoral linkages in the economy -- 5.3 Effect of remittances on sectoral output growth across economic sectors -- 5.4 Importance of linkages in explaining sectoral growth -- 5.5 Effect of sectoral linkages on total output -- 6 Conclusion -- A Proof of Proposition 1 -- List of Figures -- 1 Remittances Inflows and Growth in SSA and the World, 1990-2018 -- 2 Remittances in SSA -- 3 Remittances and GDP Growth in SSA, 2010-18 -- 4 Simple Example of Changes in Demand and Sectoral Linkages (Three Sectors) -- 5 Sectors Included in the Eora MRIO Database -- 6 Structure of the Eora Database -- 7 Network Structure of Intersectoral Flows in SSA, 2011-15 -- 8 Correlation of the Two Network Measures Considered -- 9 Sectoral Linkages across Sectors (Bonacich Centrality) -- 10 Sectoral Linkages across Sectors (Weighted Outdegree) -- 11 R̃ Variable across Sectors -- 12 Changes in R̃ and Sectoral Output Growth (Weighted Outdegree) -- 13 Sectoral Linkages and Sectoral Output Growth (Weighted Outdegree) -- 14 Sectoral Linkages and Sectoral Output Growth (Bonacich Centrality) -- 15 Sectoral Linkages and Total Output Growth (Weighted Outdegree) -- 16 Sectoral Linkages and Total Output (Bonacich Centrality) -- List of Tables -- 1 Uses of Remittances Receipts in Selected African Countries, by Source -- 2 Effect of Remittances Inflows on the Economic Sectors (Output), by Country, Period 2011-15.
,
3 Effect of a 5 Percent Remittances Inflows on the Economic Sectors (Output) by Country, Period 2011-15 -- 4 Relationship between Sectoral Linkages and Sectoral Output Growth (Weighted Outdegree) -- 5 Relationship between Sectoral Linkages and Sectoral Output Growth (Bonacich Centrality).
Additional Edition:
ISBN 1-4983-2448-7
Language:
English
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