The nexus of remittances, institutional quality, and financial inclusion

Autor: Hayot Berk Saydaliyev, Lee Chin, Yessengali Oskenbayev
Jazyk: angličtina
Rok vydání: 2020
Předmět:
Zdroj: Economic research-Ekonomska istraživanja
Volume 33
Issue 1
Ekonomska Istraživanja, Vol 33, Iss 1, Pp 3528-3544 (2020)
ISSN: 1848-9664
1331-677X
Popis: The present article adopted the dynamic panel data method to investigate the effect of the inflow of remittances on financial inclusion (FI), particularly focusing on high remittance-receiving developing countries between 2011 and 2018. The current research found that remittances that foster FI are associated with better institutional quality. The evidence revealed that the effect of remittances on FI is conditional upon individuals’ perception of the institutions. Positive coefficient on the interaction terms indicates that the impact of remittances on FI can be enhanced in the recipient countries, if the public trusts the financial institutions. Hence, the overall results of the current research suggest that the impact of remittances on FI is conditional on institutions. On a final note, the policy implications of these findings are thoroughly evaluated at the end of this article.
Databáze: OpenAIRE