Remittances as aid following major sudden-onset natural disasters.

There is a general assumption, based on macroeconomic studies, that remittances will rise following major sudden-onset natural disasters. This is confirmed by a few assessments involving country-specific research, and usually short-term data. This study, questioning conventional wisdom, reviewed and graphed annual and quarterly remittance flows using International Monetary Fund and World Bank data from 2000-14 for 12 countries that confronted 18 major natural disasters. It found that, regardless of event type, annual remittances rose steadily from 2000-14 except for after the 2008-09 financial crisis. Post disaster, there was a quarterly increase in the majority of cases (confirming previous research) but there was seldom an annual increase in the year of the disaster greater than the average annual increase in 2000-14. It appears that remittance senders rush to provide assistance after a natural disaster, but since their own financial situation has not changed, the immediate increase is compensated by a later decrease.