Work

Do Workers' Remittances Promote Financial Development ?

Year: 2006

Type: report

Abstract: Workers ’ remittances to developing countries have become the second largest type of flows after foreign direct investment. This paper uses data on workers ’ remittance flows to 99 developing countries during 1975-2003 to study the impact of remittances on financial sector development. In particular, we examine whether remittances contribute to increasing the aggregate level of deposits and credit intermediated by the local banking sector. This is an important question considering the extensive literature that has documented the growth-enhancing and povertyreducing effects of financial development. Our findings provide strong support for the notion that remittances promote financial development in developing countries.

Source: World Bank, Washington, DC eBooks

DOI: 10.1596/1813-9450-3957

Authors: Reena Aggarwal, Asli Demirgüç-Kunt, Maria Soledad Martinez Peria

Institutions: Georgetown University, World Bank, World Bank Group, International Monetary Fund

Language: English

Topic: Migration and Labor Dynamics

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W1683984027

Cites: 56

Cited by: 338

Related to: 9