Financial development and remittances: The role of institutional quality in developing countries

Kim, Jounghyeon

doi:10.1016/j.eap.2021.09.005

Cited by 12 publications

(8 citation statements)

References 49 publications

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“…The International Monetary Fund (IMF) in its sixth edition of balance of payment manual categorizes remittances of migrants as personal remittances which contains employees' compensation and personal transfers. Drawing on current work of Anarfo et al (2020) and Kim (2021), the study used personal remittances as proxy of remittances.…”

Section: Remittancesmentioning

confidence: 99%

“…Lowering the transaction costs of remittances can signi cantly increase the number of remittances owing through formal nancial institutions (Ahlin & Pang, 2008). Higher institutional quality can facilitate the effective and e cient transmission of remittances through o cial nancial channels, thereby improving the functioning of nancial systems (Kim, 2021). As a result of the feedback mechanisms at play, an enhancement in IQ can augment the in uence of remittances on FI.…”

Section: Remittances and Financial Inclusion-the Role Of Iqmentioning

confidence: 99%

“…The existing studies concerning remittances, IQ, and FI nexus have uncovered the presence of endogeneity issues (Kim, 2021). The endogeneity in econometric analysis denotes the situation where a variable in a model correlated with the error term or other predictors violating the assumption of exogeneity potentially resulting in biased and inconsistent estimates (Nakamura & Nakamura, 1998).…”

Section: Main Model With Instrumental Variable (Iv) Estimationmentioning

confidence: 99%

“…This made us cautious in using this approach and we consider alternative method to address endogeneity by employing external instrument of crop production index and live-stock production index (Amuedo-Dorantes & Pozo, 2004). More recently, these instruments have also employed by Kim (2021) while examining remittances association with nancial development (FD).…”

Section: Main Model With Instrumental Variable (Iv) Estimationmentioning

confidence: 99%

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Remittances and Financial Inclusion: The Role of Institutional Quality in Belt and Road Initiative Economies

Liaqat,

Hashmi,

Khan

et al. 2024

Preprint

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This study examines the remittances and financial inclusion nexus by subsuming the critical role of institutional quality in the unique settings of Belt and Road Initiative (BRI) economies. The existing literature pertaining to the role of institutional quality in remittances and financial inclusion has placed less emphasis on the multidimensional nature of financial inclusion. Therefore, this study contributes to the debate on the role of institutions in explaining the nexus between remittances and financial inclusion. By adopting two-stage least squares (2SLS) and generalized methods of moments (GMM) estimation techniques, the empirical findings show that institutional quality plays a significant role in explaining the relationship between remittances and financial inclusion across various dimensions. The overall findings are further confirmed by applying a series of robustness checks such as the adoption of alternative measure of financial inclusion and institutional quality, alternative instruments and alternative estimator. The study offers useful policy implications for governments, regulatory agencies, and other stakeholders in BRI partners economies. GEL Classification: F24; G15; G28

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Section: Remittancesmentioning

confidence: 99%

Section: Remittances and Financial Inclusion-the Role Of Iqmentioning

confidence: 99%

Section: Main Model With Instrumental Variable (Iv) Estimationmentioning

confidence: 99%

Section: Main Model With Instrumental Variable (Iv) Estimationmentioning

confidence: 99%

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Remittances and Financial Inclusion: The Role of Institutional Quality in Belt and Road Initiative Economies

Liaqat,

Hashmi,

Khan

et al. 2024

Preprint

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“…Second, a considerable number of publications center around indicators that measure the FD processes, currently developed through three methodological approaches. The quantitative (first) approach relies on traditional indicators of the monetary market [22][23][24]. The advantage of this concept is the availability of a vast array of statistical data publicly available for countries worldwide, which enables building time series over a long period and conducting a comparative cross-country analysis.…”

Section: -Literature Reviewmentioning

confidence: 99%

Financial Development Strategies: Defining Objectives and Priorities

Gospodarchuk,

Zeleneva

2023

Emerg Sci J

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In recent years, scientific and practical interest in the strategic management of countries' financial development has grown significantly. However, an analysis of publications on this topic indicates the absence of a methodology to make strategic decisions on the formation of goals and priorities for financial development. The purpose of this study is to develop a methodology for the strategic management of the financial development of countries. The study uses methods of systemic, comparative, GEP analysis, and a rule-based judgment method. The result of the study is the development of a concept that allows defining strategy, quantified strategic goals and priorities for financial development, and its testing in OECD countries. The novelty of the research lies in the systematic approach to the formation of strategic goals and priorities based on the System of National Accounts, the multi-level system of key indicators of financial development, criteria formalizing alternative strategies, and rules for making strategic decisions. This is the first time such a concept has been proposed. The advantages of the developed concept are high representativeness, objectivity, and a wide range of applications. Its use will improve the quality of strategic management of countries' financial development and ensure transparency in government decisions. Doi: 10.28991/ESJ-2023-07-06-09 Full Text: PDF

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