Remittances, Institutions and Financial Inclusion: New Evidence of Non-Linearity

Issabayev, Murat; H, Saydaliyev; Avsar, Veysel; Lee, Chin

doi:10.1142/s2194565920500025

Cited by 10 publications

(13 citation statements)

References 38 publications

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“…The contribution from this study to the existing literature is three-fold. First, the impact of remittances on the economy, precisely focusing on both macro aspects, including economic, financial development (Ahmed et al, 2021;Bolarinwa and Akinbobola, 2021;Ellahi and Omer, 2021), financial inclusion (Issabayev et al, 2020;Barnabe, 2021), and macro aspects, such as household consumption (Raihan et al, 2009(Raihan et al, , 2021Kumar et al, 2021), education (Zhunio et al, 2012;Ambler et al, 2015), and social security (De Haas, 2010;Peth and Sakdapolrak, 2020) have been investigated but there is yet any conclusive evidence. However, the impact of remittances is undoubtedly acknowledged and appreciated in literature from every corner of the economy.…”

Section: Introductionmentioning

confidence: 99%

Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

Miao

Qamruzzaman

2021

Front. Psychol.

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The study's motivation is to gauge the effects of remittances on openness: financial and economic openness and financial stability in least developed countries (LDCs) for the period spanning 1975–2018. The study applies Generalized Moment of Methods (GMM) and System-GMM to detect the magnitude of remittances, gross capital formation, and government debt on openness and financial stability, and their directional association is established by performing a Granger causality test with System-GMM specification. The results of cross-sectional dependency ascertain the presence of a common dynamic among the research units; on the other hand, both first, and second-generation unit root tests establish that variables are integrated either at level or after the first difference, neither variables are exposed to order of integration after second difference. A panel co-integration test based on error correction confirms the availability of the long-run association among variables. Study findings with GMM and System-GMM estimation expose positive statistically significant effects of remittance inflows to economic and financial openness and financial stability. In LDCs, remittance inflows positively augment economic and financial openness; moreover, financial stability remittances play a critical role. The study implemented the Granger causality test with System-GMM specification, and results disclosed the feedback hypothesis that is bidirectional causality availability in the tested empirical causal model.JEL Classifications: F24, F43, P34.

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Section: Introductionmentioning

confidence: 99%

Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

Miao

Qamruzzaman

2021

Front. Psychol.

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“…In the case of remittances, the quality of institutions in receiving countries can signi cantly impact the development and functioning of their nancial systems, with possible implications for FI (Berk Saydaliyev et al, 2020;Issabayev et al, 2020b). Robust institutional frameworks, that promote economic stability may reduce information asymmetries, and enforce contractual agreements, are likely to foster a more competitive and e cient nancial sector, thus reducing the cost of remittance transactions (Khan et al, 2019).…”

Section: Remittances and Financial Inclusion-the Role Of Iqmentioning

confidence: 99%

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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“…Recently, there has been a rise in interest by economic researchers and policymakers in the importance of remittance inflows and their impacts on various economic activities (Tu et al 2019). In recent years, the applied research has shifted toward the FI issue (Aga & Martínez 2014;Anzoategui et al 2014;Ebenezer et al 2020;Helen & Robert 2007;Inoue & Hamori 2016;Manuel & Julia 2015;Murat et al 2020;Nitin 2013;Sami et al 2020). However, the existing applied research provides mixed evidence on the remittance inflows-FI linkage.…”

Section: Review Of Related Literaturementioning

confidence: 99%

A nonlinear autoregressive distributed lag approach to remittances and access to financial inclusion in Jordan

Alabdulrazag,

Alshogeathri

2024

South African Journal of Economic and management Sciences

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Background: Financial inclusion and its relationship with remittances has been widely an area of investigation among researchers. Aim:The study investigates the asymmetric effects of remittance inflows on financial inclusion (FI) in Jordan.Setting: Annual time series data (1990-2022) constitute 33 observations. Method: This study uses the nonlinear autoregressive distributed lag (NARDL) model. Results:The empirical evidence showed a long-run equilibrium relationship among the model's variables. Furthermore, the standard Wald test provides evidence of the asymmetric long-run and short-run effects of remittance inflows on FI and, hence, the nonlinear relationship. Conclusion:The Jordanian government should promote efforts to simulate the inflow of remittances to the country. This study uncovered the vital relationship between FI and remittance inflows and its important role in enhancing financial sector development.Contirbution: This study contributes to the existing literature on the remittances-FI nexus. First, it uncovered the vital and important relationship between FI and remittance inflows, and its crucial role in enhancing financial sector development. Second, unlike previous studies that used linear ARDL or traditional estimation methods, it applied the NARDL approach to test for the existence of a nonlinear relationship between the model's variables. Third, it suggests that policymakers in Jordan government should put effort into stimulating the inflow of remittances to promote FI and, hence, economic growth and development.

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Remittances, Institutions and Financial Inclusion: New Evidence of Non-Linearity

Cited by 10 publications

References 38 publications

Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

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

A nonlinear autoregressive distributed lag approach to remittances and access to financial inclusion in Jordan

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