Anzoategui, DiegoDemirgüç-Kunt, AsliMartínez Pería, María Soledad2012-03-192012-03-192011-10-01https://hdl.handle.net/10986/3603This paper investigates the impact of remittances on financial inclusion. This is an important issue given recent studies showing that financial inclusion can have significant beneficial effects on households. Using household-level survey data for El Salvador, the authors examine the impact of remittances on households' use of savings and credit instruments from formal financial institutions. They find that although remittances have a positive impact on financial inclusion by promoting the use of deposit accounts, they do not have a significant and robust effect on the demand for and use of credit from formal institutions. If anything, by relaxing credit constraints, remittances might reduce the need for external financing from financial institutions, while at the same time increasing the demand for savings instruments.CC BY 3.0 IGOACCESS TO BANKACCESS TO BANK ACCOUNTSACCESS TO CREDITACCESS TO FINANCIAL SERVICESACCESS TO SAVINGSAGRICULTURAL ACTIVITIESAGRICULTURAL ACTIVITYAGRICULTUREAMOUNT OF REMITTANCESBALANCE OF PAYMENTBALANCE OF PAYMENTSBANK BRANCHESBANK CREDITBANK DEPOSITSBANK OFFICEBANK POLICYBANKING SECTORBANKING SYSTEMBANKSBIG CITIESBUSINESS FORMATIONCAPITA INCOMECAPITAL FLOWSCAPITAL MARKETCENTRAL BANKCHECKING ACCOUNTCHILD HEALTHCIVIL WARCOLLATERALCOMMERCIAL BANKSCONSUMER LOANSCOOPERATIVESCOSTS OF REMITTANCESCREDIT ACCESSCREDIT CONSTRAINTSCREDIT PRODUCTSCREDIT UNIONSDATA ON REMITTANCESDEMAND FOR CREDITDEMAND FOR SAVINGSDEMOGRAPHIC CHARACTERISTICSDEPOSITDEPOSIT ACCOUNTDEPOSIT ACCOUNTSDETERMINANTS OF REMITTANCESDEVELOPING COUNTRIESDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDEVELOPMENT CENTERDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDIVIDENDSDUMMY VARIABLEDUMMY VARIABLESDURABLESECONOMETRIC MODELSECONOMIC ACTIVITIESECONOMIC CONDITIONSECONOMIC GROWTHECONOMIC RESEARCHECONOMIC SELF-SUFFICIENCYEDUCATIONAL ATTAINMENTEFFECT OF REMITTANCESEFFECTS OF REMITTANCESEMIGRATIONEMPLOYERSEMPLOYMENT STATUSEMPOWERMENTEXCHANGE RATEEXCLUSIONEXPENDITUREEXPORTSEXTERNAL FINANCINGFINANCE COMPANYFINANCIAL ACCESSFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INTERMEDIATIONFINANCIAL LITERACYFINANCIAL MARKETSFINANCIAL MARKETS DEVELOPMENTFINANCIAL REFORMSFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STUDIESFINANCIAL SYSTEMFIXED COSTSFOREIGN BANKFOREIGN BANK ENTRYFORMAL FINANCIAL INSTITUTIONFORMAL FINANCIAL INSTITUTIONSFUTURE RESEARCHGDPGDP PER CAPITAGENDERGLOBAL DEVELOPMENTGLOBALIZATIONHEAD OF HOUSEHOLDHOLDINGHOST COUNTRYHOUSEHOLD FIXED EFFECTSHOUSEHOLD INCOMEHOUSEHOLD LEVELHOUSEHOLD SURVEYSHOUSEHOLDSHUMAN CAPITALIMPACT OF MIGRATIONIMPACT OF REMITTANCESIMPORTANCE OF REMITTANCESINCOME INEQUALITYINEQUALITYINFANTINFORMAL CHANNELSINSTRUMENTINSURANCEINTERNATIONAL BANKINTERNATIONAL MIGRANTSINTERNATIONAL MIGRATIONINTERNATIONAL REMITTANCESKINSHIPLAND OWNERSHIPLARGE CITIESLIVING STANDARDSLOANMACROECONOMIC PERFORMANCEMENTAL HEALTHMICRO-ENTERPRISESMICROCREDITMICROENTERPRISESMICROFINANCEMIGRANTMIGRANT REMITTANCESMIGRANTSMIGRANTS SENDING REMITTANCESMIGRATIONMIGRATION FLOWSMIGRATION PATTERNSMONETARY FUNDMORTALITYOFFICIAL DEVELOPMENT ASSISTANCEPENSIONSPER CAPITA INCOMEPOLICY DISCUSSIONSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOSITIVE COEFFICIENTPOSITIVE EFFECTSPRIVATE CAPITALPRIVATE CREDITPRIVATIZATIONPRODUCTIVE INVESTMENTPROFITABILITYPROGRESSREAL GDPREAL INCOMERECEIPTRECIPIENT HOUSEHOLDSREMITTANCEREMITTANCE FLOWREMITTANCE FLOWSREMITTANCE RECIPIENTSREMITTANCESREMITTANCES FLOWSRESERVERESPECTROLE OF REMITTANCESSAVINGSSAVINGS ACCOUNTSAVINGS INSTRUMENTSSAVINGS PRODUCTSAVINGS PRODUCTSSEND REMITTANCESSOCIAL DEVELOPMENTSOCIAL SCIENCESOURCE OF CREDITSPOUSETEMPORARY MIGRATIONTERM DEPOSITSTOTAL AMOUNT OF REMITTANCESVALUE OF REMITTANCESVOLATILE INCOMESWEALTHWorld Bank10.1596/1813-9450-5839