Recent studies indicate that the effect of migrants’ remittances on the economic growth of receiving countries depends negatively on the level of development of the domestic financial sector. In this paper, we introduce a new indicator of financial development to measure the efficiency of the domestic banking system, and find the existence of complementarity between remittances and bank efficiency in economic growth, such that remittances promote growth only in countries whose banks function well. This result is robust to controls for other traditional measures of financial depth and institutional quality indicators.

Remittances and financial development: substitutes or complements in economic growth? / Bettin, Giulia; Zazzaro, Alberto. - In: BULLETIN OF ECONOMIC RESEARCH. - ISSN 0307-3378. - 64:4(2012), pp. 509-536. [10.1111/j.1467-8586.2011.00398.x]

Remittances and financial development: substitutes or complements in economic growth?

Alberto Zazzaro
2012

Abstract

Recent studies indicate that the effect of migrants’ remittances on the economic growth of receiving countries depends negatively on the level of development of the domestic financial sector. In this paper, we introduce a new indicator of financial development to measure the efficiency of the domestic banking system, and find the existence of complementarity between remittances and bank efficiency in economic growth, such that remittances promote growth only in countries whose banks function well. This result is robust to controls for other traditional measures of financial depth and institutional quality indicators.
2012
Remittances and financial development: substitutes or complements in economic growth? / Bettin, Giulia; Zazzaro, Alberto. - In: BULLETIN OF ECONOMIC RESEARCH. - ISSN 0307-3378. - 64:4(2012), pp. 509-536. [10.1111/j.1467-8586.2011.00398.x]
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11588/699034
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 108
  • ???jsp.display-item.citation.isi??? 81
social impact