What Explains the Price of Remittances? An Examination Across 119 Country Corridors
AbstractRemittances are a substantial source of external financing for developing countries that influence many aspects of their development. Though research has shown that remittances are both expensive and price sensitive, little is known about what explains their price. Newly gathered data across 119 country pairs or corridors are used to explore the factors associated with the price of remittances. Corridors with larger numbers of migrants and more competition among providers are found to exhibit lower prices for remittances, when average prices across all types of remittance service providers are considered. Corridors with lower barriers to access banking services and broader regulation of remittance service providers also have lower prices. Remittance prices are higher in richer corridors and in corridors with greater bank participation in the remittance market. Few significant differences emerge when results are compared across banks and, separately, across money transfer operators. However, estimations for Western Union, a leading player in the remittances business, suggest that its prices are less sensitive to competition. Copyright , Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by World Bank Group in its journal The World Bank Economic Review.
Volume (Year): 25 (2011)
Issue (Month): 1 (May)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: http://wber.oxfordjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2011.
"Remittances and Financial Openness,"
DNB Working Papers
317, Netherlands Central Bank, Research Department.
- Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2009. "Remittances and Financial Openness," CREA Discussion Paper Series 09-09, Center for Research in Economic Analysis, University of Luxembourg.
- Michel Beine & Elisabetta Lodigiani & Robert Vermeulen, 2010. "Remittances and Financial Openness," CESifo Working Paper Series 3090, CESifo Group Munich.
- Michel Beine & Elisabetta Lodigiani & Robert Vermuelen, 2010. "Remittances and Financial Openness," Development Working Papers 299, Centro Studi Luca d\'Agliano, University of Milano.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.