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Remittances and Credit Markets: Evidence from Senegal

Linguere Mbaye

No 9340, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study investigates the impact of remittances on credit markets in Senegal. The findings show that remittances and credit markets are complements; namely, the receipt of remittances increases the likelihood of having a loan in a household. This result is robust after controlling for the potential endogeneity of remittances through household fixed effects and an instrumental variable approach. A detailed analysis also shows that the impact of remittances on credit markets is mainly driven by loans taken for consumption and food, in particular, as well as loans provided by informal institutions.

Keywords: migration; remittances; credit markets (search for similar items in EconPapers)
JEL-codes: F24 O15 O16 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2015-09
New Economics Papers: this item is included in nep-mfd
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