Article
Do immigrants' funds affect the exchange rate?
GEP discussion paper
(2017)
Abstract
Using annual data over 1966-2014 from the Citizenship and Immigration statistics archives of Canada, we investigate how the funds brought into Canada by immigrants, affects the real effective exchange rate (REER) of Canada. We employ the ARDL bounds testing (Pesaran, Shin and Smith, 1999) and Dynamic OLS (Stock and Watson, 1993) approaches to cointegration. Both estimation methods indicate a long run relation between immigrants’ funds and exchange rate with immigrants' funds leading to a significant appreciation of the exchange rate in Canada. These results are robust to different estimation methods and an alternative proxy measure for the funds brought into Canada by immigrants.
Keywords
- Immigration,
- exchange rate,
- Immigrants' funds,
- Canada
Disciplines
Publication Date
Fall October 10, 2017
Citation Information
Nusrate Aziz, Wing Leong Teo and Arusha Cooray. "Do immigrants' funds affect the exchange rate?" GEP discussion paper (2017) Available at: http://works.bepress.com/nusrate_aziz/25/