The Impact of Parallel Exchange Rate's Premium on the flow of remittances for Algerian migrants: an analytical and empirical study during 1980-2018

Abstract

The aim objective of This study is to test the impact of the Parallel Exchange Rate's Premium on the flow of remittances for Algerian immigrants during the period between 1980-2018, using the cointegration model according to the ARDL bounds test analysis. The results of the econometric study indicated that remittances in Algeria are affected by some of the macroeconomic variables, which are related to a positive and significant relationship with income levels in destination countries represented by France, and are positively and significantly affected by income. levels, inflation rates and real interest rates in Algeria. On the other hand, the relationship between remittances and the Parallel Exchange Rate's Premium was inverse and significant, which indicated the importance of informal channels in transferring expatriate money.