Remittances and financial inclusion: Does financial developemnt matter?

Chrysost Bangaké and Jude Eggoh ()

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Abstract: This study provides new evidence on the relationship between remittances and financial inclusion using generalized methods of moments (GMM) and panel threshold regressions (PTR). The sample consists of 64 developing countries over the period 2004-2017. The empirical results suggest that remittances improve financial inclusion, and the relationship between both variables is nonlinear, with respect to financial development. These findings are supported by PTR estimations, that confirm positive and significant relationship between remittances and financial inclusion below a given threshold of financial development. Beyond this threshold, remittances and financial inclusion nexus is not significant. These results have some policy implications.

Date: 2021
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Published in Economics Bulletin, 2021, 41 (2), pp.374-386

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Journal Article: Remittances and Financial Inclusion: Does Financial Development Matter? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03271429

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