Remittances, institutions and financial inclusion: new evidence of non-linearity
This paper investigates the effect of remittance inflows on financial inclusion. Using data from high remittance-receiving developing countries and applying dynamic panel data methods, we find that remittance inflow has a negative impact on financial inclusion for countries with low level of remitta...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
World Scientific
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/86683/1/Remittances%2C%20institutions.pdf http://psasir.upm.edu.my/id/eprint/86683/ https://www.worldscientific.com/doi/abs/10.1142/S2194565920500025?journalCode=gej |
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| Summary: | This paper investigates the effect of remittance inflows on financial inclusion. Using data from high remittance-receiving developing countries and applying dynamic panel data methods, we find that remittance inflow has a negative impact on financial inclusion for countries with low level of remittances. However, this relationship is positive for countries with high level of remittances. Our study found that there exists a nonlinear relationship between remittances and financial inclusion. We also show that the effect of remittances on the financial inclusion is conditional upon people’s perception about institutions. |
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