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Working Paper 232 - Remittances and Access to rural credit markets Evidence from Senegal

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Abstract

This study investigates the impact of remittances on credit markets in Senegal. The findings show that remittances and credit markets are complements; namely, the receipt of remittances increases the likelihood of having a loan in a household. This result is robust after controlling for the potential endogeneity of remittances through household fixed effects and an instrumental variable approach. A detailed analysis also shows that the impact of remittances on credit markets is mainly driven by loans taken for consumption and food, in particular, as well as loans provided by informal institutions.

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  • Mbaye Linguère Mously, 2016. "Working Paper 232 - Remittances and Access to rural credit markets Evidence from Senegal," Working Paper Series 2325, African Development Bank.
    • Handle: RePEc:adb:adbwps:2325
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    Cited by:

    1. Christian Paul & Dillon Brian, 2016. "Working Paper 241 - Long term consequences of consumption seasonality," Working Paper Series 2349, African Development Bank.

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