Microfinance Institutions (MFIs) on the Remittances Market: Money Transfer Activity and Savings Mobilisation
This paper is a first attempt to empirically measure the impact of a money transfer activity on MFIs’ savings mobilisation. After analysing the opportunities for MFIs to succeed in transforming remittances receivers into clients, the paper empirically tests whether MFIs operating on the remittances market have a significantly higher level of savings than others, thanks to their money transfer activity. After building our variable of interest (a dummy for the money transfer activity) based on the Mixmarket website (for the regions of Latin America and the Caribbean, East Asia and the Pacific, South Asia and Africa), we run a cross-section regression for the year 2006 between the “savings over assets” ratio as explained variable and a set of explaining variables, including our variable of interest. We find a positive and significant coefficient for the money transfer activity dummy. Latest version; August 2011 - http://www.solvay.edu/sites/upload/files/CEB_WorkingPapers/LastUpdate/wp09022.pdf
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- Freund, Caroline & Spatafora, Nikola, 2005. "Remittances : transaction costs, determinants, and informal flows," Policy Research Working Paper Series 3704, The World Bank.
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"Remittances, Financial Development, and Growth,"
IZA Discussion Papers
2160, Institute for the Study of Labor (IZA).
- repec:imf:imfwpa:07/38 is not listed on IDEAS
- Toxopeus, Helen S. & Lensink, Robert, 2007. "Remittances and Financial Inclusion in Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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