An Empirical Analysis on Remittances and Financial Development in Latin American Countries

Sumaiya Binta Islam and Laboni Mondal

Papers from arXiv.org

Abstract: Remittances have become one of the driving forces of development for countries all over the world, especially in lower-middle-income nations. This paper empirically investigates the association between remittance flows and financial development in 4 lower-middle-income countries of Latin America. By using a panel data set from 1996 to 2019, the study revealed that remittances and financial development are positively associated in these countries. The study also discovered that foreign direct investment and inflation were positively correlated with financial development while trade openness had a negative association with financial development. Therefore, policymakers of these countries should implement and formulate such policies so that migrant workers would have the incentives to send money through formal channels, which will augment the effect of remittances on the recipient country.

Date: 2023-09
New Economics Papers: this item is included in nep-fdg, nep-int and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2309.08855 Latest version (application/pdf)

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:arx:papers:2309.08855

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().