Do Workers’ Remittances Promote Financial Development?

Aggarwal, Reena; Demirgüç-Kunt, Asli; Martinez Peria, Maria Soledad

doi:10.1596/1813-9450-3957

Do Workers’ Remittances Promote Financial Development?

collection.link.5	https://openknowledge.worldbank.org/handle/10986/9
collection.name.5	Policy Research Working Papers
dc.contributor.author	Aggarwal, Reena
dc.contributor.author	Demirgüç-Kunt, Asli
dc.contributor.author	Martinez Peria, Maria Soledad
dc.date.accessioned	2012-06-19T15:27:55Z
dc.date.available	2012-06-19T15:27:55Z
dc.date.issued	2006-07
dc.date.lastModified	2021-04-23T14:02:41Z
dc.description.abstract	Workers' remittances to developing countries have become the second largest type of flows after foreign direct investment. The authors use data on workers' remittance flows to 99 developing countries from 1975-2003 to study the impact of remittances on financial sector development. In particular, they 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 poverty-reducing effects of financial development. The findings provide strong support for the notion that remittances promote financial development in developing countries.	en
dc.identifier	http://documents.worldbank.org/curated/en/2006/07/6887560/workers-remittances-promote-financial-development
dc.identifier.uri	http://hdl.handle.net/10986/8418
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper; No. 3957
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ABSOLUTE TERMS
dc.subject	ACCOUNTING
dc.subject	ADVERSE EFFECT
dc.subject	AGGREGATE LEVEL
dc.subject	BALANCE OF PAYMENT
dc.subject	BALANCE OF PAYMENT STATISTICS
dc.subject	BALANCE OF PAYMENTS
dc.subject	BALANCE OF PAYMENTS STATISTICS
dc.subject	BANK DEPOSITS
dc.subject	BANK LENDING
dc.subject	BANKING SECTOR
dc.subject	CAPITAL ACCOUNT
dc.subject	CAPITAL ACCOUNT LIBERALIZATION
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL INFLOWS
dc.subject	CENTRAL BANKS
dc.subject	COMMERCIAL BANKS
dc.subject	COMPENSATION OF EMPLOYEES
dc.subject	COMPETITIVENESS
dc.subject	COUNTRY CHARACTERISTICS
dc.subject	COUNTRY LEVEL
dc.subject	COUNTRY SIZE
dc.subject	COUNTRY SPECIFIC
dc.subject	CREDIT MARKET
dc.subject	CREDITOR RIGHTS
dc.subject	CROSS COUNTRY
dc.subject	CROSS COUNTRY EVIDENCE
dc.subject	CURRENT ACCOUNT
dc.subject	DATA ON REMITTANCES
dc.subject	DEPENDENT VARIABLE
dc.subject	DEPOSIT MONEY
dc.subject	DEPOSIT MONEY BANKS
dc.subject	DEPOSITS
dc.subject	DESCRIPTIVE STATISTICS
dc.subject	DEVELOPED COUNTRIES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT BANK
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT IMPACT OF REMITTANCES
dc.subject	DEVELOPMENT INDICATORS
dc.subject	DOMESTIC FINANCIAL LIBERALIZATION
dc.subject	DOMESTIC FINANCIAL SYSTEMS
dc.subject	DOMESTIC INTEREST RATES
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC CONDITIONS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC DOWNTURNS
dc.subject	ECONOMIC FUNCTIONS
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC IMPACT
dc.subject	ECONOMIC OUTLOOK
dc.subject	ECONOMIC PERFORMANCE
dc.subject	EDUCATIONAL ATTAINMENT
dc.subject	EFFECT OF REMITTANCES
dc.subject	EMIGRATION
dc.subject	EMPIRICAL RESULTS
dc.subject	ENTREPRENEURSHIP
dc.subject	ERROR TERM
dc.subject	ERROR TERMS
dc.subject	ESTIMATION TECHNIQUES
dc.subject	EVOLUTION OF REMITTANCES
dc.subject	EXCHANGE ARRANGEMENTS
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATE REGIMES
dc.subject	EXCHANGE RATES
dc.subject	EXCHANGE RESTRICTIONS
dc.subject	EXPLANATORY VARIABLES
dc.subject	EXPORTS
dc.subject	EXTERNAL FINANCE
dc.subject	FINANCE LITERATURE
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL DEPENDENCE
dc.subject	FINANCIAL DEPTH
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL ECONOMICS
dc.subject	FINANCIAL FLOWS
dc.subject	FINANCIAL FRAGILITY
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL LIBERALIZATION
dc.subject	FINANCIAL MANAGEMENT
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL PRODUCTS
dc.subject	FINANCIAL REFORM
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SECTOR DEVELOPMENT
dc.subject	FINANCIAL SECTOR PERFORMANCE
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	FIXED COSTS
dc.subject	FIXED EFFECTS
dc.subject	FLOWS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FORMAL REMITTANCES
dc.subject	GDP
dc.subject	GDP DEFLATOR
dc.subject	GDP PER CAPITA
dc.subject	GROWTH RATE
dc.subject	HOUSEHOLD DATA
dc.subject	HUMAN CAPITAL
dc.subject	IMPACT OF REMITTANCES
dc.subject	INCOME
dc.subject	INCREASE IN REMITTANCES
dc.subject	INFLATION
dc.subject	INFLATION RATE
dc.subject	INFORMAL FLOWS
dc.subject	INFORMAL REMITTANCES
dc.subject	INTEREST RATE
dc.subject	INTEREST RATE CONTROLS
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL FINANCIAL STATISTICS
dc.subject	INTERNATIONAL MIGRATION
dc.subject	LAGGED DEPENDENT
dc.subject	LAGGED VALUES
dc.subject	LIQUID ASSETS
dc.subject	LIQUID LIABILITIES
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CONSTRAINTS
dc.subject	LOANABLE FUNDS
dc.subject	MIGRANT REMITTANCES
dc.subject	MIGRANT TRANSFERS
dc.subject	MIGRANT WORKERS
dc.subject	MIGRANTS
dc.subject	MIGRANTS SENDING REMITTANCES
dc.subject	MIGRATION
dc.subject	MIGRATION DATA
dc.subject	MONETARY ECONOMICS
dc.subject	MONEY TRANSFER
dc.subject	MONEY TRANSFER COMPANIES
dc.subject	MONEY TRANSFER OPERATORS
dc.subject	MULTIPLE EXCHANGE RATE
dc.subject	MULTIPLE EXCHANGE RATES
dc.subject	NEGATIVE IMPACT
dc.subject	0 HYPOTHESIS
dc.subject	POLICY ISSUES
dc.subject	POLICY RESEARCH
dc.subject	POLITICAL ECONOMY
dc.subject	POST OFFICES
dc.subject	POVERTY GAP
dc.subject	POVERTY REDUCING
dc.subject	POVERTY REDUCTION
dc.subject	PRIVATE CREDIT
dc.subject	PRIVATE SECTOR
dc.subject	PUBLIC POLICY
dc.subject	REAL GDP
dc.subject	RECIPIENT COUNTRIES
dc.subject	RECIPIENTS OF REMITTANCES
dc.subject	REDUCING POVERTY
dc.subject	REMITTANCE
dc.subject	REMITTANCE DATA
dc.subject	REMITTANCE FLOWS
dc.subject	REMITTANCE MARKET
dc.subject	REMITTANCE RECEIVING
dc.subject	REMITTANCE RECEIVING COUNTRIES
dc.subject	REMITTANCE RECIPIENTS
dc.subject	REMITTANCE TRANSFER
dc.subject	REMITTANCES
dc.subject	REMITTANCES FLOWS
dc.subject	RESTRICTIONS ON CAPITAL ACCOUNT TRANSACTIONS
dc.subject	RURAL AREAS
dc.subject	SAVINGS
dc.subject	SEND MONEY
dc.subject	SIGNIFICANT EFFECT
dc.subject	SIGNIFICANT IMPACT
dc.subject	STOCK MARKETS
dc.subject	TRANSACTION COSTS
dc.subject	TRANSFER PROCESS
dc.subject	TRANSFER SERVICES
dc.subject	UNEMPLOYMENT
dc.subject	UNEMPLOYMENT RATE
dc.subject	UNRECORDED REMITTANCES
dc.subject	USE OF REMITTANCES
dc.subject	VOLUME OF REMITTANCE FLOWS
dc.subject	WAGES
dc.subject	WORKERS REMITTANCES
dc.subject	WORLD INCOME DISTRIBUTION
dc.title	Do Workers’ Remittances Promote Financial Development?	en
okr.crosscuttingsolutionarea	Jobs
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2006/07/6887560/workers-remittances-promote-financial-development
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Poverty
okr.globalpractice	Finance and Markets
okr.globalpractice	Finance and Markets
okr.googlescholar.linkpresent	yes
okr.identifier.doi	10.1596/1813-9450-3957
okr.identifier.externaldocumentum	000016406_20060628102507
okr.identifier.internaldocumentum	6887560
okr.identifier.report	WPS3957
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/06/28/000016406_20060628102507/Rendered/PDF/wps3957.pdf	en
okr.topic	Poverty Reduction :: Achieving Shared Growth
okr.topic	Macroeconomics and Economic Growth :: Remittances
okr.topic	Economic Theory and Research
okr.topic	Banks and Banking Reform
okr.topic	Macroeconomics and Economic Growth :: Financial Economics
okr.topic	Finance and Financial Sector Development
okr.unit	Development Research Group (DECRG)
okr.volume	1 of 1

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