International Congress on Eurasian Economies

International Conference on Eurasian Economies

5-7 October 2017 – Bishkek, KYRGYZSTAN

Paper detail

Paper ID : 1969
Status : Paper published
Language : Turkish
Topic : Macroeconomics
Presenter: Daniyar Jasoolov
Session : 4C Finans II

Remittances and The Real Effective Exchange Rate: Empirical Evidence from Kyrgyzstan
İşçi Dövizleri ve Reel Efektif Döviz Kuru: Kırgızistan Üzerinde Bir Uygulama


Since 2000 the volume of economic reasoned migration has been rapidly rising in Kyrgyzstan. The number of labor migrants currently working abroad counts around 600 thousand people or about 10% of the population of Kyrgyzstan. With growing pattern of labor migration, the amount of remittances has grown as well. According to the World Bank, Kyrgyzstan is on the first place in the world in terms of share of remittances in the GDP (34%) in 2016. The main remittance sending countries for 2005-2016 periods are the Russian federation and Kazakhstan. The large scale of migration outflow and remittances, making domestic economy of Kyrgyzstan dependent on external shocks, related with migration. For this reason, the purpose of this study is to examine the impact the high level of remittances inflow from labor migration on the exchange rates, particularly on the reel effective exchange rate of Kyrgyzstan for the period of 2005-2016. The empirical analysis was carried out with Cointegration model, and according to the results obtained, the remittances and real effective exchange rates have long run relationship.

JEL codes:

Sulaimanova, Burulcha, Jasoolov, Daniyar (2017). "Remittances and The Real Effective Exchange Rate: Empirical Evidence from Kyrgyzstan" in Proceedings of International Conference of Eurasian Economies 2017, pp.355-357, Bishkek, KYRGYZSTAN.


Full paper in PDF format.

Session 4C: Finans II

Eurasian Economists Association Kyrgyz-Turkish Manas University Istanbul Beykent University Doğuş University