Open AccessPosted Content
Do Workers' Remittances Promote Financial Development?
Reads0
Chats0
TLDR
Workers' remittances to developing countries have become the second largest type of flows after foreign direct investment as mentioned in this paper, and they contribute to increasing the aggregate level of deposits and credit intermediated by the local banking sector.Abstract:
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.read more
Citations
More filters
Posted Content
Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa
Smita Wagh,Catherine Pattillo +1 more
TL;DR: In this article, the authors assess the impact of the steadily growing remittance flows to sub-Saharan Africa (SSA) and find that remittances, which are a stable, private transfer, have a direct poverty mitigating effect, and promote financial development.
Posted Content
What is the Impact of International Remittances on Poverty and Inequality in Latin America
TL;DR: In this article, the authors used a large cross-country panel dataset to find that remittances in Latin American and Caribbean (LAC) countries have increased growth and reduced inequality and poverty.
Journal ArticleDOI
Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa
TL;DR: The authors assesses the effect of the steadily growing remittance flows to sub-Saharan Africa and finds that remittances, which are a stable, private transfer, have a direct poverty-mitigating effect, and promote financial development.
Journal ArticleDOI
What is the impact of international remittances on poverty and inequality in Latin America
TL;DR: In this paper, the authors used a large cross-country panel dataset to find that remittances in Latin American and Caribbean (LAC) countries have increased growth and reduced inequality and poverty.
Posted ContentDOI
Do Workers' Remittances Promote Economic Growth?
TL;DR: This article showed that workers' remittances have no impact on economic growth and would only be expected to affect economic growth through their effect on remittance, while other sources of financial flows such as private capital and official aid have been shown to have a positive effect on long-run economic growth.
References
More filters
Journal ArticleDOI
Another look at the instrumental variable estimation of error-components models
Manuel Arellano,Olympia Bover +1 more
TL;DR: In this paper, a framework for efficient IV estimators of random effects models with information in levels which can accommodate predetermined variables is presented. But the authors do not consider models with predetermined variables that have constant correlation with the effects.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
ReportDOI
Financial Dependence and Growth
Raghuram G. Rajan,Raghuram G. Rajan,Raghuram G. Rajan,Luigi Zingales,Luigi Zingales,Luigi Zingales +5 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
Related Papers (5)
Do international migration and remittances reduce poverty in developing countries
Richard H. Adams,John Page +1 more
Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.
Manuel Arellano,Stephen Bond +1 more