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Mr. Adolfo Barajas, Mr. Ralph Chami, Mr. Christian H Ebeke, and Mr. Sampawende J Tapsoba

(positive) determinant of remittance outflows to receiving countries. Several explanations can be evoked to explain why remittances might be more effective in channeling economic downturns in the sending countries into remittance-receiving countries. First, remittance outflows from sending countries may contract more sharply in bad times compared to their recovery during good times. For example, migrant workers are particularly vulnerable to economic downturns in the host countries given that they have temporary employment contracts and are easily fired during downturns