Remittances flow during the COVID-19 pandemic: The role of digital financial services

Richard Chamboko () and Dennis Ochieng ()
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Richard Chamboko: Department of Economics and Finance, University of the Free State, South Africa
Dennis Ochieng: International Finance Corporation, World bank Group

Economics Bulletin, 2025, vol. 45, issue 4, 2111 - 2119

Abstract: The COVID-19 pandemic led to the loss of livelihoods for many households, exacerbating vulnerability. Remittances from friends and family became a major source of income especially in developing countries. Little is known about the role of digital financial services (DFS) in facilitating remittances to alleviate vulnerabilities. We address this knowledge gap using the Instrumental Variable approach on nationally representative data from Ghana and Zimbabwe. We find that households that used DFS, specifically the mobile money financial technology, were more likely to receive remittances. Proximity to agents increased the likelihood of using DFS, underscoring the importance of expanding agent networks in developing countries.

Keywords: Digital Financial Services; Fintech: Mobile Money; Remittances; Vulnerability; COVID-19 (search for similar items in EconPapers)
JEL-codes: D6 G2 (search for similar items in EconPapers)
Date: 2025-12-30
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