Remittances and Banking Sector Breadth and Depth : Evidence from Mexico
Despite the rising volume of remittances flowing to developing countries, their impact on banking sector breadth and depth in recipient countries has been largely unexplored. The authors examine this topic using municipio-level data on the fraction...
Main Authors: | , , , |
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Language: | English |
Published: |
2012
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Subjects: | |
Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090630105142 http://hdl.handle.net/10986/4175 |
Summary: | Despite the rising volume of remittances
flowing to developing countries, their impact on banking
sector breadth and depth in recipient countries has been
largely unexplored. The authors examine this topic using
municipio-level data on the fraction of households that
receive remittances and on measures of banking breadth and
depth for Mexico. They find that remittances are strongly
associated with greater banking breadth and depth,
increasing the number of branches and accounts per capita
and the ratio of deposits to gross domestic product. These
effects are significant both statistically and economically,
even after conducting robustness tests and addressing the
potential endogeneity of remittances. |
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