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Remittances and Credit Markets: Evidence from Senegal

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  • Mbaye, Linguère Mously

    (African Development Bank)

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.

Suggested Citation

  • Mbaye, Linguère Mously, 2015. "Remittances and Credit Markets: Evidence from Senegal," IZA Discussion Papers 9340, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9340
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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.
    2. Mduduzi Biyase & Yourishaa Naidoo, 2023. "The Symmetric and Asymmetric Effect of Remittances on Financial Development: Evidence from South Africa," IJFS, MDPI, vol. 11(1), pages 1-17, January.
    3. Roseline Nyakerario Misati & Anne Kamau & Hared Nassir, 2019. "Do migrant remittances matter for financial development in Kenya?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-25, December.

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    More about this item

    Keywords

    credit markets; remittances; migration;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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