From: Do migrant remittances matter for financial development in Kenya?
Year | Author/s | Country/ies | Data | Methodology | Findings |
---|---|---|---|---|---|
Karikari et al. | 50 Developing countries in Africa | 1990–2011 | Fixed Effects; Random Effects and Vector Error Correction Model | Remittances have a positive effect on financial development in the short run but a negative effect in the long run. | |
Muktadir-Al-Mukit and Islam | Bangladesh | 1976–2012 | VAR and VECM | There is a positive relationship between remittances and credit disbursement in the long run. Bi-directional causality is also established | |
Ambrosius and Cuecuecha | Mexico | Household survey data (2002; 2005) | Fixed effects and instrumental variables | There are positive effects of remittances on the ownership of savings account, existence of debts and borrowing. | |
Williams | Sub-Saharan Africa | 1970–2013 | Panel data | Remittances positively influence financial development | |
Mbaye | Senegal | Household survey data (May–July 2009; April–June 2011) | Household fixed effects model | Receipt of remittances increases likelihood of having a loan in a household. | |
Coulibaly | Sub-Saharan Africa | 1980–2010 | Panel granger causality | No strong evidence supporting the view that remittances affect financial development or vice versa. | |
Anzoategai et al. | Elsavador | 1995–2001, four wave rural household level survey data | Fixed effects | Households that receive remittances are more likely to have a deposit account at a financial institution. | |
Ojapinwa and Oladipo | 32 SSA countries | 1996–2010 | Dynamic panel GMM | Remittances affect financial development in a positive and significant way implying that remittances complement financial intermediation in SSA countries. | |
Brown et al. | Developing countries | 1970–2005 | Panel Least Squares, 2SLS and Probit approaches | Remittances flows do not induce opening of bank accounts or increase in credit to the private sector. | |
Nyamongo et al. | Africa | 1980–2009 | Panel data approaches | Remittances are complementary to financial development and are an important source of economic growth. | |
Motelle | Lesotho | Vector Error Correction Model and Causality tests | Remittances have a long-run effect on financial development. Causality is established from financial development to remittances but not vice versa | ||
Giuliano and Ruiz-Arranz | 100 developing countries | 1975–2002 | System GMM; OLS and Fixed Effects | Remittances provide an alternative way to finance investment and help overcome liquidity constraints. | |
Gupta et al. | Sub Saharan Africa | 1975–2004 | Three stage least squares | Remittances have a direct poverty mitigating effect and promotes financial development. | |
Beine et al. | 66 developing countries | 1980–2005 | Dynamic generalized ordered logit model | A strong positive effect of remittances on financial openness. | |
Toxopeus and Lensinki | Developing countries | 2003 | OLS | Remittance flows have a significant positive effect on financial inclusion in developing countries. | |
Aggarwal et al. | 99 Developing countries | 1975–2003 | GMM | Impact of remittances on financial development is positive though marginal. |