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Are remittances a "catalyst" for financial access? Evidence from Mexican household data

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  • Ambrosius, Christian

Abstract

In 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.

Suggested Citation

  • Ambrosius, Christian, 2012. "Are remittances a "catalyst" for financial access? Evidence from Mexican household data," Discussion Papers 2012/8, Free University Berlin, School of Business & Economics.
  • Handle: RePEc:zbw:fubsbe:20128
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    File URL: https://www.econstor.eu/bitstream/10419/57828/1/714995819.pdf
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Do remittances create credit?
      by Economic Logician in Economic Logic on 2012-05-31 19:42:00

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    Cited by:

    1. Christian Ambrosius & Barbara Fritz & Ursula Stiegler, 2014. "Remittances for Financial Access: Lessons from Latin American Microfinance," Development Policy Review, Overseas Development Institute, vol. 32(6), pages 733-753, November.

    More about this item

    Keywords

    Remittances; Mexico; Financial Access; Microfinance;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, 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

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