Remittances and Financial Inclusion in Development
AbstractIn this paper we focus on the relationship between remittance inflows and financial inclusion in developing countries. We present single equation estimates on remittances and financial inclusion, and system estimates in which economic growth is explained by e.g., financial inclusion, and financial inclusion by, e.g., remittances inflows. These regressions clearly confirm our main hypothesis that remittances have a development impact through their effect on financial inclusion. Overall, our paper indicates the importance of studying the effects of remittances in developing countries. Remittances, in terms of size, are not only one of the main capital inflows in developing countries, often even more substantial than ODA, but they also appear to have a robust positive effect on economic growth.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2007/49.
Length: 28 pages
Date of creation: 2007
Date of revision:
capital flows; remittances; finance;
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- Mim, Sami Ben & Ali, Mohamed Sami Ben, 2012. "Through which channels can remittances spur economic growth in MENA countries?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 6(33), pages 1-27.
- Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.
- Ritha Sukadi Mata, 2009. "Microfinance Institutions (MFIs) on the Remittances Market: Money Transfer Activity and Savings Mobilisation," Working Papers CEB 09-022.RS, ULB -- Universite Libre de Bruxelles.
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