Economic dynamic of remittances sent from Spain and the United States to Colombia between 2005-2013: an analysis of cointegration

The purpose of this paper is to analyze the behavior of remittances from Spain and the United States to Colombia in the last nine years, searching specifically what its long-term determinants are. To achieve it, cointegration analysis validated with an error correction method is implemented. It is f...

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Bibliographic Details
Main Authors:	Gómez, Andrés Mauricio, Ramirez Gutierrez, Zoraida
Format:	Online
Language:	spa eng
Published:	Universidad Pedagógica y Tecnológica de Colombia 2014
Subjects:	Remittances cointegration error correction model long-run stability. Remesas cointegración mecanismo de corrección de errores.
Online Access:	https://revistas.uptc.edu.co/index.php/cenes/article/view/3100

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Summary:	The purpose of this paper is to analyze the behavior of remittances from Spain and the United States to Colombia in the last nine years, searching specifically what its long-term determinants are. To achieve it, cointegration analysis validated with an error correction method is implemented. It is found that the series under analysis for both Spain and the United States are cointegrated, i.e. there are stable long-term relationships between remittances, GDP, unemployment and the exchange rate, although the rate of convergence between the short and long term within this ratio is high for the U.S. and slower for Spain.