An Analysis of the Macroeconomic Determinants of Peruvian Remittances

Abstract

This paper evaluates the impact of several macroeconomic variables on the Peruvian remittances flow, as well as the existence of cointegration between them, during the period 1992 – 2017. To do so, the United States was chosen as the host country for the Peruvian migrants and the paper used quarterly data, American and Peruvian variables and a vector of error correction (VEC). Among the main results, evidence of co-integrated variables was confirmed, a structural break was found, and the impact of some macroeconomic determinants corroborate the predominance of the self-interest effect over the altruist one in the Peruvian migrants’ behavior.