title: The impact of remittances on the monetary transmission mechanism in low-income countries

authors: Abdul Raheem, Jahan

subjects: remittances

abstract: This thesis consists of three studies investigating the impact of remittances on monetary transmission mechanisms. The prime objective of this research is to explore how the inflow of remittances affects the different monetary transmission channels in remittance-receiving economies and what other factors influence remittances in altering their effects on monetary transmission mechanisms. The first two studies were undertaken using a panel of 51 remittance-receiving countries, while the third study used Sri Lanka as the location. 

The first study investigates the effects of remittances on bank credit and exchange rate channels, using a panel Structural Vector Autoregression (SVAR) to investigate how remittances affect these intermediate monetary transmission channels. The estimated impulse responses (IRs) of bank credit and exchange rates to a shock in remittances show a significant variation between countries in responding to a shock in remittances. In the second stage, we regress the IRs of selected horizons on selected economically significant variables to find out what other factors contribute to this variation. The cross-sectional regression suggests that the magnitude of remittances in terms of the remittances-to-GDP ratio affects the exchange rates channel significantly. However, the effect of remittances on bank credit is determined by the level of remittance inflow and the savings-to-GDP ratio. More precisely, remittances significantly affect the bank credit channel in countries where the remittances-to-GDP ratio is higher than five percent of GDP. The overall findings of this study suggest that policymakers, especially in higher remittance-receiving countries, have to pay attention to the role remittances play in weakening the monetary transmission mechanism (MTM). 

The second study investigates how institutions play a role in altering the effects of remittances on the bank credit channel. There are arguments about whether remittances contribute to the expansion of credit in remittance-receiving countries. In this study, we use a panel SVAR model to estimate the IRs of bank credit to a shock in remittances and regress these IRs on a set of institutional and other economically significant variables. The regression results indicate that stronger corruption control and regulatory quality, along with savings-to-GDP and remittances-to-GDP ratios, are associated with credit expansion in response to remittances. This empirical finding indicates that monetary policy measures may have difficulty in achieving their objectives through bank credit in higher remittance-receiving countries, which have a strong corruption control and regulatory quality environment. 

The third study analyses how the effects of remittances vary with regard to bank credit, exchange rates, and asset price channels in the conflict and post-conflict periods in the Sri Lankan economy. We apply a country-specific SVAR model by using the monthly data from 1996 to 2019. The empirical analysis suggests that remittances significantly affect these monetary transmission channels in the post-conflict period, and their effects on bank credit and asset prices are relatively stronger than the exchange rate channel in this period.

text: The impact of remittances on the monetary transmission mechanism in low-income countries This thesis consists of three studies investigating the impact of remittances on monetary transmission mechanisms. The prime objective of this research is to explore how the inflow of remittances affects the different monetary transmission channels in remittance-receiving economies and what other factors influence remittances in altering their effects on monetary transmission mechanisms. The first two studies were undertaken using a panel of 51 remittance-receiving countries, while the third study used Sri Lanka as the location. 

The first study investigates the effects of remittances on bank credit and exchange rate channels, using a panel Structural Vector Autoregression (SVAR) to investigate how remittances affect these intermediate monetary transmission channels. The estimated impulse responses (IRs) of bank credit and exchange rates to a shock in remittances show a significant variation between countries in responding to a shock in remittances. In the second stage, we regress the IRs of selected horizons on selected economically significant variables to find out what other factors contribute to this variation. The cross-sectional regression suggests that the magnitude of remittances in terms of the remittances-to-GDP ratio affects the exchange rates channel significantly. However, the effect of remittances on bank credit is determined by the level of remittance inflow and the savings-to-GDP ratio. More precisely, remittances significantly affect the bank credit channel in countries where the remittances-to-GDP ratio is higher than five percent of GDP. The overall findings of this study suggest that policymakers, especially in higher remittance-receiving countries, have to pay attention to the role remittances play in weakening the monetary transmission mechanism (MTM). 

The second study investigates how institutions play a role in altering the effects of remittances on the bank credit channel. There are arguments about whether remittances contribute to the expansion of credit in remittance-receiving countries. In this study, we use a panel SVAR model to estimate the IRs of bank credit to a shock in remittances and regress these IRs on a set of institutional and other economically significant variables. The regression results indicate that stronger corruption control and regulatory quality, along with savings-to-GDP and remittances-to-GDP ratios, are associated with credit expansion in response to remittances. This empirical finding indicates that monetary policy measures may have difficulty in achieving their objectives through bank credit in higher remittance-receiving countries, which have a strong corruption control and regulatory quality environment. 

The third study analyses how the effects of remittances vary with regard to bank credit, exchange rates, and asset price channels in the conflict and post-conflict periods in the Sri Lankan economy. We apply a country-specific SVAR model by using the monthly data from 1996 to 2019. The empirical analysis suggests that remittances significantly affect these monetary transmission channels in the post-conflict period, and their effects on bank credit and asset prices are relatively stronger than the exchange rate channel in this period.

year: 2026

title: Unsteady free surface flow induced by a line sink in a fluid of finite depth

authors: Stokes, Tim E.

abstract: The unsteady withdrawal of fluid from a reservoir of finite depth with a free surface through a line sink is considered. A numerical method is used to investigate the evolution of a free surface in several different geometric and initial configurations, and it is shown that there are some critical flow parameters at which the flow changes its nature. The existence of steady states is also considered. Results both with and without surface tension are included and placed in context with previous work. Inclusion of surface tension reveals that solutions either evolve to a steady state or drawdown. As the sink is moved off the base, the behaviour becomes consistent with flows in a fluid of infinite depth, and consequently flows can be classified as either “shallow” or “deep” depending on their drawdown behaviour.

text: Unsteady free surface flow induced by a line sink in a fluid of finite depth The unsteady withdrawal of fluid from a reservoir of finite depth with a free surface through a line sink is considered. A numerical method is used to investigate the evolution of a free surface in several different geometric and initial configurations, and it is shown that there are some critical flow parameters at which the flow changes its nature. The existence of steady states is also considered. Results both with and without surface tension are included and placed in context with previous work. Inclusion of surface tension reveals that solutions either evolve to a steady state or drawdown. As the sink is moved off the base, the behaviour becomes consistent with flows in a fluid of infinite depth, and consequently flows can be classified as either “shallow” or “deep” depending on their drawdown behaviour.

year: 2008

title: Geographical and ethnic differences of osteoarthritis-associated hip and knee replacement surgeries in New Zealand: a population-based cross-sectional study

authors: Lao, Chunhuan

abstract: Objectives To (1) explore the regional and ethnic differences in rates of publicly funded osteoarthritis-associated hip and knee replacement surgeries and (2) investigate the mortality after surgery.

Design Population-based, retrospective, cross-sectional study.

Setting General population in New Zealand.

Participants Patients with osteoarthritis who underwent publicly funded primary hip and knee replacement surgeries in 2005–2017. Patients aged 14–99 years were included.

Primary and secondary outcome measures Age-standardised rate, standardised mortality ratio (SMR) and 30 days, 90 days and 1 year mortality.

Results We identified 53 439 primary hip replacements and 50 072 primary knee replacements with a diagnosis of osteoarthritis. The number and age-standardised rates of hip and knee replacements increased over time. Māori had the highest age-standardised rate of hip replacements, followed by European/others and Pacific, and Asian had the lowest rate. Pacific had the highest age-standardised rate of knee replacements, followed by Māori and European/others, and Asian had the lowest rate. The Northern Health Network had the lowest rate of hip surgeries, and the Southern Health Network had the lowest rate of knee surgeries. The SMRs of patients undergoing hip and knee replacements were lower than the general population: 0.92 (95% CI 0.89 to 0.95) for hip and 0.79 (95% CI 0.76 to 0.82) for knee. The SMRs were decreasing over time. The patterns of 30 days, 90 days and 1 year mortality were similar to the SMR.

Conclusions The numbers of publicly funded osteoarthritis-associated primary hip and knee replacements are steadily increasing. Māori people had the highest age-standardised rate of hip replacements and Pacific people had the highest rate of knee replacements. The Northern Health Network had the lowest rate of hip surgeries, and the Southern Health Network had the lowest rate of knee surgeries. Compared with the general population, patients who had hip and knee replacements have a better life expectancy.

text: Geographical and ethnic differences of osteoarthritis-associated hip and knee replacement surgeries in New Zealand: a population-based cross-sectional study Objectives To (1) explore the regional and ethnic differences in rates of publicly funded osteoarthritis-associated hip and knee replacement surgeries and (2) investigate the mortality after surgery.

Design Population-based, retrospective, cross-sectional study.

Setting General population in New Zealand.

Participants Patients with osteoarthritis who underwent publicly funded primary hip and knee replacement surgeries in 2005–2017. Patients aged 14–99 years were included.

Primary and secondary outcome measures Age-standardised rate, standardised mortality ratio (SMR) and 30 days, 90 days and 1 year mortality.

Results We identified 53 439 primary hip replacements and 50 072 primary knee replacements with a diagnosis of osteoarthritis. The number and age-standardised rates of hip and knee replacements increased over time. Māori had the highest age-standardised rate of hip replacements, followed by European/others and Pacific, and Asian had the lowest rate. Pacific had the highest age-standardised rate of knee replacements, followed by Māori and European/others, and Asian had the lowest rate. The Northern Health Network had the lowest rate of hip surgeries, and the Southern Health Network had the lowest rate of knee surgeries. The SMRs of patients undergoing hip and knee replacements were lower than the general population: 0.92 (95% CI 0.89 to 0.95) for hip and 0.79 (95% CI 0.76 to 0.82) for knee. The SMRs were decreasing over time. The patterns of 30 days, 90 days and 1 year mortality were similar to the SMR.

Conclusions The numbers of publicly funded osteoarthritis-associated primary hip and knee replacements are steadily increasing. Māori people had the highest age-standardised rate of hip replacements and Pacific people had the highest rate of knee replacements. The Northern Health Network had the lowest rate of hip surgeries, and the Southern Health Network had the lowest rate of knee surgeries. Compared with the general population, patients who had hip and knee replacements have a better life expectancy.

year: 2019