Do workers'remittances promote financial development ?

By Rajesh K. Aggarwal, Asli Demirgüç-Kunt, María Soledad Martínez Pería. 2006

312 citations recorded by the source corpus.

Workers' remittances to developing countries have become the second largest type of flows after foreign direct investment. The authors use data on workers' remittance flows to 99 developing countries from 1975-2003 to study the impact of remittances on financial sector development. In particular, they examine whether remittances contribute to increasing the aggregate level of deposits and credit intermediated by the local banking sector. This is an important question considering the extensive literature that has documented the growth-enhancing and poverty-reducing effects of financial development. The findings provide strong support for the notion that remittances promote financial development in developing countries.

Subfields: Information Systems, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/e91407a86e9f30530b1831c4aefedcb01c0bfd18

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Citations in the corpus

Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries (2012, methodology): “Therefore, to deal with this problem, we follow Catrinescu et al (2006), Aggarwal et al (2006) and Anyanwu (2010) in estimating the equations instrumentalizing the foreign aid variable with its relevant lagged levels, using a the two-step (IV) efficient generalized method of moments (GMM)…”
Migrants’ Remittances and Financial Development: Macro‐ and Micro‐Level Evidence of a Perverse Relationship (2013, background): “Others similarly hypothesise that remittance transfer services offered to migrant households bring banks into contact with unbanked remittance recipients, allowing for extension of their outreach (Gupta et al., 2009; Aggarwal et al., 2011; Demirgüç-Kunt et al., 2011).”
Remittances and Institutions: Are Remittances a Curse? (2008, unknown): “For example, Aggarwal et al. (2006) find that var( ) 0.85 var( ) u x = which implies even larger measurement error.”
Remittances and Economic Growth: Empirical Evidence from Bangladesh, India and Sri Lanka (2012, background): “Those that argue for the positive developmental effects of remittances focus on the multiplier effects of consumption (Stahl and Arnold, 1986 ), development of the financial institutions that handle remittance payments (Aggarwal et al, 2006 ), use of remittances as foreign exchange (Ratha, 2005 )”
The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program (2009, background): “In addition, Aggarwal et al. (2006) have recently used cross-country panel data to show an association between remittances and financial development, with the argument being that the receipt of remittances paves the way for recipients to demand and gain access to other”
Remittances, Exchange Rate Regimes, and the Dutch Disease: A Panel Data Analysis (2012, unknown): “Variables (1) (2) (3) (4) (5) (6) (7) (8) Remittances (% GDP) -0.”
Remittances and Financial Development:;Substitutes or Complements in Economic Growth? (2012, unknown): “Moreover, remittances seem to further financial development in recipients’ countries which, in turn, has been shown to play a key role in reducing poverty, inequality and fostering economic growth (Aggarwal et al. 2006; Beck et al. 2007; Gupta et al. 2009). Therefore, at first sight one should expec”
The Impact of Migrant Remittances on Economic Growth: Evidence from South Asia (2012, unknown): “Remittances have also been found to promote economic growth (Mundaca, 2009), promote financial sector development (Giuliano and Ruiz-Arranz, 2009; Aggarwal et al., 2006) and reduce output volatility (Chami et al., 2009).”
Institutions and Financial Development: Evidence from International Migrants in the United States (2008, background): “This view is reinforced by evidence presented in Aggarwal et al. (2006) that remittances do not in general substitute for financial development in receiving countries; instead they tend to promote financial development.”
Remittances and Household Consumption Instability in Developing Countries (2011, background): “5 Two external instruments are added: the ratio of remittances to GDP of all other recipient countries located in the same region and the log weighted GDP per capita for each of the migrant host countries (Aggarwal et al, 2006; Acosta et al., 2009).”
Remittances flow and financial development in Bangladesh (2011, background): “It is believed that a large part of the flow of remittances remains unrecorded which could be as large as 20 to 200% of the officially recorded remittances (Aggarwal et al., 2006; World Bank, 2006; Choucri, 1986).”