00000nam a22000004a 4500 UP-8027390931316464917 Buklod 20251006184549.0 m |o d | cr ||||||||||| 251006s2022 xxu r |||| u|eng d DECON rda eng LG 993.5 2022 E2 P37 Pascual, Mark Joseph M. author. OFW remittances and real effective exchange rates evidence from the Philippines 2000-2020 Mark Joseph M. Pascual [and] Samantha Seno. Quezon City School of Economics, University of the Philippines Diliman 2022. 30 leaves 28 cm text rdacontent txt unmediated rdamedia n volume rdacarrier nc Thesis (BS Economics) - - University of the Philippines Diliman December 2022 Includes bibliographical references. Migrant remittances augment most of developing countries’ external funding contributing to their economic growth, including the Philippines. The consistently massive inflows each year have revealed their increasing importance to households and the macroeconomy; however, some studies have warned of their undesirable effects in the foreign exchange market. Specifically, an increase in remittances tends to increase the real exchange rate and encourage a real currency appreciation that negatively affects trade balance. This paper examines the impact of remittances on the real effective exchange rate (REER) index of the Philippines from 2000 to 2020, along with trade variables like exports, imports, and foreign direct investment (FDI) that traditionally influence the foreign exchange market. After a logarithmic transformation and using multiple linear regression, this paper empirically validates that remittances can independently cause an appreciation and overvaluation of the peso. However, this is canceled out by the effect of imports as it depreciates the peso by almost the same magnitude. The opposing effects of remittances and trade on the economy depend on their respective degrees of over/undervaluation of the currency. Remittances Economic aspects Philippines. Exchange Rates Economic aspects Philippines. Seno, Samantha author. Thesis. UP FI UPD DECON LG 993.5 2022 E2 P37 Thesis