Key points are not available for this paper at this time.
Abstract Using disaggregated sectorial data for developing and transition countries, this study shows that rising levels of remittances have spending effects that may lead to real exchange rate appreciation, and resource movement effects that favor the nontradable sector at the expense of tradable goods production. These are two characteristics of the phenomenon known as “Dutch disease”. The results further suggest that resource movement effects that favor the nontradable sector should operate stronger under fixed nominal exchange rate regimes.
Lartey et al. (Mon,) studied this question.