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Remittances and Financial Inclusion: Does Financial Development Matter?

Author

Listed:
  • Jude Eggoh

    (GRANEM, University of Angers & FASEG, University of Abomey-Calavi)

  • Chrysost Bangaké

    (Lille Economie et Management (LEM), University of Artois)

Abstract

This study provides new evidence on the relationship between remittances and financial inclusion using generalized methods of moments (GMM) and panel threshold regressions (PTR). The sample consists of 64 developing countries over the period 2004-2017. The empirical results suggest that remittances improve financial inclusion, and the relationship between both variables is nonlinear, with respect to financial development. These findings are supported by PTR estimations, that confirm positive and significant relationship between remittances and financial inclusion below a given threshold of financial development. Beyond this threshold, remittances and financial inclusion nexus is not significant. These results have some policy implications.

Suggested Citation

  • Jude Eggoh & Chrysost Bangaké, 2021. "Remittances and Financial Inclusion: Does Financial Development Matter?," Economics Bulletin, AccessEcon, vol. 41(2), pages 374-386.
    • Handle: RePEc:ebl:ecbull:eb-20-00655
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; financial inclusion; financial development; GMM; PTR;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F3 - International Economics - - International Finance

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