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Remittances and Financial Inclusion: Evidence from El Salvador

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  • Anzoategui, Diego
  • Demirgüç-Kunt, Asli
  • Martínez Pería, María Soledad

Abstract

This paper investigates the impact of remittances on financial inclusion. Using household-level survey data for El Salvador, we examine whether remittances affect households’ use of savings and credit instruments from formal financial institutions. We find that although remittances have a positive impact on financial inclusion by promoting the use of deposit accounts, they do not have a significant and robust effect on the demand for and use of credit from formal institutions. If anything, by relaxing credit constraints, remittances might reduce the need for external financing from financial institutions, while at the same time increasing the demand for savings instruments.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 54 (2014)
Issue (Month): C ()
Pages: 338-349

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Handle: RePEc:eee:wdevel:v:54:y:2014:i:c:p:338-349

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: remittances; financial inclusion;

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References

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Cited by:
  1. Carmen Hoyo & Ximena Pena & David Tuesta, 2013. "Demand factors that influence financial inclusion in Mexico. Analysis of the barriers based on the ENIF survey," Working Papers 1337, BBVA Bank, Economic Research Department.
  2. Ambrosius, Christian, 2012. "Are remittances a substitute for credit? Carrying the financial burden of health shocks in national and transnational households," Discussion Papers 2012/9, Free University Berlin, School of Business & Economics.
  3. Ambrosius, Christian & Cuecuecha, Alfredo, 2013. "Are Remittances a Substitute for Credit? Carrying the Financial Burden of Health Shocks in National and Transnational Households," World Development, Elsevier, vol. 46(C), pages 143-152.
  4. Carmen Hoyo & Ximena Pena & David Tuesta, 2013. "Factores de demanda que influyen en la Inclusion Financiera en Mexico. Analisis de las barreras a partir de la ENIF," Working Papers 1336, BBVA Bank, Economic Research Department.

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