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Migrant Remittances and Financial Development: Are SIDS Different?

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  • Kevin Williams

Abstract

Does financial development respond differently to migrant remittances in Small Island Developing States (SIDS) compared to other developing countries? This paper examines the impact of migrant remittances on financial development using a panel model that includes both SIDS and other developing countries. Although SIDS face distinct economic and environmental challenges compared to other developing countries, I find that migrant remittances do not lead to a significantly different response in financial development between SIDS and other developing countries. Therefore, remittance policies applied in other developing countries may also be relevant to SIDS. I also show that a country's development status influences how financial development responds to migrant remittances.

Suggested Citation

  • Kevin Williams, 2025. "Migrant Remittances and Financial Development: Are SIDS Different?," South African Journal of Economics, Economic Society of South Africa, vol. 93(4), pages 433-451, December.
    • Handle: RePEc:bla:sajeco:v:93:y:2025:i:4:p:433-451
    DOI: 10.1111/saje.70005
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