This paper examines the link between migrant remittances and financial inclusion in Africa. Our sample consists of 29 African countries from 2004 to 2017. Using a system GMM and a Pooled Mean Group (PMG), we find that migrant remittances have a negative short-term but positive long-term effect on financial inclusion. In addition, migrant remittances increase access to financial services in the long run. However, remittances have a negative effect on the use of financial services. To benefit from migrant remittances, it would be useful to lower the transaction costs of migrant remittances and adopt financial instruments that can better channel these flows to productive sectors.
The objective of this paper is to examine the relationship between migrant remittances and economic growth by considering the role of financial efficiency in 34 African countries from 1995 to 2016. The methodology is based on a GMM system model and a Pooled Mean Group (PMG) on a sample of 34 African countries. The empirical results show us the following conclusions: (i) Migrant remittances and financial efficiency have a positive impact on economic growth. (ii) The interaction between remittances and financial efficiency has a negative impact on economic growth. (iii) Migrant remittances have a long-term impact on economic growth. (iv) The combined effect of migrant remittances and financial efficiency has a negative impact on economic growth. Moreover, this impact is more pronounced in low-and middle-income countries. To better benefit from migrant remittances, recipient countries need to focus on financial development.
This paper provides original econometric evidence on whether financial integration stimulates capital accumulation based on data for a sample of 15 Franc area countries over the period 1996-2018. Using the system generalized method of moments, the FMOLS cointegration approach, two main results are found. First, financial integration contributes to capital accumulation in Franc area countries. Second, the effects differ according to the indicators of financial integration. Thus, the Lane and Milesi-Ferretti index reports a higher effect of financial integration on capital accumulation, then comes FDI and finally remittances from migrants over the long run. Our findings suggest that the effect of financial integration on accumulation depends on the indicator used and integration into international financial markets significantly increases the capital stock.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.