The Effect of COVID-19 pandemic on the Philippine International Remittances from Selected Host Countries

Date

1-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Luisa G. Valera

Committee Member

Gideon P. Carnaje, Agham C. Cuevas

Abstract

The important role of remittances in the economy of many countries has encouraged many organizations and researchers to study this subject in different aspects. Despite this, there are few studies tackling the impact of macroeconomic shocks like the recent COVID- 19 pandemic on remittances, especially in the case of the Philippines which is a known remittance-dependent country. Following the framework of the cyclicality of remittances, this study documented how the COVID-19 pandemic affects the Philippine international remittances from the USA and Singapore. Real GDP growth, exchange rate, inflation rate, and interest rate have also been used in the analysis to know the macroeconomic determinants of remittances.

The results from the Johansen cointegration test and Vector error correction model revealed that the COVID-19 pandemic has a significant positive effect on remittance levels from the U.S.A and Singapore. Adverse economic conditions brought about by macroeconomic shocks like the pandemic increase remittance inflows to the Philippines from the two countries. This proves the countercyclicality behavior of Philippine remittances. Macroeconomic variables like home and host real GDP growth rate, bank lending interest rate, exchange rate, and inflation rate are also seen to be significantly related to international remittances both in the short and long run. Based on these findings, this study recommends guaranteeing the remittance inflows through different channels. Moreover, it is vital to safeguard the welfare of overseas workers who have been the main sources of international remittances.

Language

English

LC Subject

Foreign exchange, COVID-19 Pandemic, 2020-

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 R48

Notes

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Document Type

Thesis

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