01957cas a2200253 a 4500 AALejournalIMF007284 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455290666 1018-5941 BD-DhAAL BD-DhAAL Arezki, Rabah. Rainfall, Financial Development, and Remittances : Evidence From Sub-Saharan Africa / Rabah Arezki, Markus Bruckner. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We use annual variation in rainfall to examine the effects that exogenous, transitory income shocks have on remittances in a panel of 42 Sub-Saharan African countries during the period 1960-2007. Our main finding is that these income shocks have a significant positive effect on remittances, but that the effect is significantly decreasing in the share of domestic credit to GDP. So much so, that at high levels of credit to GDP transitory increases in income had a significant negative effect on remittances. Our findings are consistent with the view that remittances take advantage of unexploited domestic investment opportunities that can exist due to domestic credit market frictions. Our findings also support the view that when barriers to financial flows are low, remittances effectively provide insurance against transitory income shocks. Mode of access: Internet Bruckner, Markus. IMF Working Papers; Working Paper ; No. 2011/153 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/153/001.2011.issue-153-en.xml IMF e-Library