EconPapers    
Economics at your fingertips  
 

The long-run and short-run impacts of remittances on financial development in developing countries

Vincent Fromentin ()

The Quarterly Review of Economics and Finance, 2017, vol. 66, issue C, 192-201

Abstract: This paper analyzes the dynamic impact of remittances on financial development for emerging and developing countries over the period 1974–2014 employing a Pooled Mean Group (PMG) approach. With three panels differentiated by level of income, our results show that a positive long-run relationship between remittances and financial development coexists with a significant (and slightly positive) short-run relationship, except for low-income countries. Consequently, there is strong evidence supporting the view that remittances promote financial development in developing countries in the long term, but the effect may be different in the short term. We offer some financial and economic explanations for these findings.

Keywords: Remittances; Financial development; Pooled Mean Group estimator (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062976917300807
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:66:y:2017:i:c:p:192-201

Access Statistics for this article

The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty

More articles in The Quarterly Review of Economics and Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-05
Handle: RePEc:eee:quaeco:v:66:y:2017:i:c:p:192-201