Are remittances a "catalyst" for financial access? Evidence from Mexican household data
AbstractIn policy discussions, it has frequently been claimed that migrants' remittances could function as a catalyst for financial access among receiving households. This paper provides empirical evidence on this hypothesis from Mexico, a major receiver of remittances worldwide. Using the Mexican Family Life Survey panel (MxFLS) for 2002 and 2005, the results from the fixed effects logit model show that receiving remittances is strongly correlated with the ownership of savings accounts and, to some degree, with the availability of borrowing options. These effects are more important for rural households than for urban households and are more important for microfinance institutions, than for traditional banks. --
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Bibliographic InfoPaper provided by Free University Berlin, School of Business & Economics in its series Discussion Papers with number 2012/8.
Date of creation: 2012
Date of revision:
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Remittances; Mexico; Financial Access; Microfinance;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-DEV-2012-05-22 (Development)
- NEP-MFD-2012-05-22 (Microfinance)
- NEP-MIG-2012-05-22 (Economics of Human Migration)
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