IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v18y2011i3p199-205.html
   My bibliography  Save this article

Banking services, transaction costs and international remittance flows

Author

Listed:
  • Rajen Mookerjee
  • Jellina Roberts

Abstract

Using a unique data set on the financial sector, this article assesses the impact that financial sector development has on international remittance flows for a sample of 64 countries. The results show that greater financial sector development - as measured by bank branches per 1000 km2 - results in greater remittance flows to a country. However, this study also documents that transaction costs have no impact on remittance flows. This latter finding has important policy implications as reductions in transaction costs are often cited as an important approach to increase remittance flows.

Suggested Citation

  • Rajen Mookerjee & Jellina Roberts, 2011. "Banking services, transaction costs and international remittance flows," Applied Economics Letters, Taylor & Francis Journals, vol. 18(3), pages 199-205.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:3:p:199-205
    DOI: 10.1080/13504851003614146
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504851003614146&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851003614146?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Samuel Munzele Maimbo & Dilip Ratha, 2005. "Remittances: Development Impact and Future Prospects," World Bank Publications - Books, The World Bank Group, number 7339.
    2. Beck, Thorsten & Demirguc-Kunt, Asli & Martinez Peria, Maria Soledad, 2007. "Reaching out: Access to and use of banking services across countries," Journal of Financial Economics, Elsevier, vol. 85(1), pages 234-266, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bang, James T. & Mitra, Aniruddha & Wunnava, Phanindra V., 2013. "Financial Liberalization and Remittances: Recent Longitudinal Evidence," IZA Discussion Papers 7497, Institute of Labor Economics (IZA).
    2. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Financial development and remittances: Micro-econometric evidence," Economics Letters, Elsevier, vol. 115(2), pages 184-186.
    3. Giulia Bettin & Alberto Zazzaro, 2018. "The Impact of Natural Disasters on Remittances to Low- and Middle-Income Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 54(3), pages 481-500, March.
    4. Junaid Ahmed & Mazhar Mughal & Inmaculada Martínez‐Zarzoso, 2021. "Sending money home: Transaction cost and remittances to developing countries," The World Economy, Wiley Blackwell, vol. 44(8), pages 2433-2459, August.
    5. Wu, Chen & Nsiah, Christian & Fayissa, Bichaka, 2023. "Analyzing the differential impacts of financial sector development on remittance inflows," Research in Economics, Elsevier, vol. 77(2), pages 239-250.
    6. Oludele Akinloye Akinboade & Anrich Daseman & Trevor Taft & Victor M.S Molobi, 2017. "Regulation, Cross Border Migrants and the Choice of Remittance Channels in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 201-214.
    7. Richard P.C. Brown & Fabrizio Carmignani, 2015. "Revisiting the Effects of Remittances on Bank Credit: A Macro Perspective," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(5), pages 454-485, November.
    8. James T. Bang & Aniruddha Mitra & Phanindra V. Wunnava, 2015. "Financial liberalization and remittances: Recent panel evidence," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(8), pages 1077-1102, December.
    9. Kim, Jounghyeon, 2021. "Financial development and remittances: The role of institutional quality in developing countries," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 386-407.
    10. Kim, Jounghyeon, 2023. "Does population aging matter for remittances in developing countries?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1038-1056.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stijn Claessens & Erik Feijen, 2006. "Financial Sector Development and the Millennium Development Goals," World Bank Publications - Books, The World Bank Group, number 7145.
    2. Beck, Thorsten & Peria, Maria Soledad Martinez, 2009. "What explains the cost of remittances ? an examination across 119 country corridors," Policy Research Working Paper Series 5072, The World Bank.
    3. Gutiérrez-Romero, Roxana & Ahamed, Mostak, 2021. "COVID-19 response needs to broaden financial inclusion to curb the rise in poverty," World Development, Elsevier, vol. 138(C).
    4. Pablo Acosta & Cesar Calderón & Pablo Fajnzylber & Humberto López, 2006. "Remittances and Development in Latin America," The World Economy, Wiley Blackwell, vol. 29(7), pages 957-987, July.
    5. de Quidt, Jonathan & Fetzer, Thiemo & Ghatak, Maitreesh, 2018. "Commercialization and the decline of joint liability microcredit," Journal of Development Economics, Elsevier, vol. 134(C), pages 209-225.
    6. Ongo Nkoa, Bruno Emmanuel & Song, Jacques Simon, 2020. "Does institutional quality affect financial inclusion in Africa? A panel data analysis," Economic Systems, Elsevier, vol. 44(4).
    7. Wonhyung Lee & Nurul Widyaningrum, 2019. "Multidimensional access to financial services: Insights from Indonesia," Progress in Development Studies, , vol. 19(1), pages 21-35, January.
    8. Léger Félix Ntienjom Mbohou, 2023. "Understanding the role of institutions in the multiple streams approach through the recognition of the diaspora as a development agent in Cameroon," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(2), pages 355-376, June.
    9. repec:spo:wpmain:info:hdl:2441/7i7knjo7kv89n9d542jjp3tg0g is not listed on IDEAS
    10. Nanda, Kajole, 2019. "Dynamics between Bank-led Financial Inclusion and Economic Growth in Emerging Economies: The Case of India," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 9(1), pages 95-121.
    11. Guangyou Zhou & Kuangxiong Gong & Sumei Luo & Guohu Xu, 2018. "Inclusive Finance, Human Capital and Regional Economic Growth in China," Sustainability, MDPI, vol. 10(4), pages 1-20, April.
    12. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    13. Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
    14. Leora Klapper & Dorothe Singer, 2018. "The role of demand-side data - measuring financial inclusion from the perspective of users of financial services," IFC Bulletins chapters, in: Bank for International Settlements (ed.), The role of data in supporting financial inclusion policy, volume 47, Bank for International Settlements.
    15. Péter Csóka & Dániel Havran & Nóra Szűcs, 2015. "Corporate financing under moral hazard and the default risk of buyers," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(4), pages 763-778, December.
    16. Asli Demirgüç-Kunt & Luis Servén, 2010. "Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro- and Financial Policies," The World Bank Research Observer, World Bank, vol. 25(1), pages 91-124, February.
    17. Meriem Haouat & Diego N. Moccero & Ramiro Sosa Navarro, 2012. "Foreign Banks and Credit Volatility: The Case of Latin American Countries," Review of International Economics, Wiley Blackwell, vol. 20(5), pages 1017-1033, November.
    18. Mohammed Ait Lahcen & Pedro Gomis‐Porqueras, 2021. "A Model of Endogenous Financial Inclusion: Implications for Inequality and Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(5), pages 1175-1209, August.
    19. Gustav Ranis, 2007. "Migration, Trade, Capital and Development: Substitutes, Complements and Policies," Working Papers 950, Economic Growth Center, Yale University.
    20. Franklin Allen & Elena Carletti & Robert Cull & Jun QJ Qian & Lemma Senbet & Patricio Valenzuela, 2021. "Improving Access to Banking: Evidence from Kenya [A matter of experience? Understanding the decline in group lending]," Review of Finance, European Finance Association, vol. 25(2), pages 403-447.
    21. Amon Simba & Mahdi Tajeddin & Léo-Paul Dana & Domingo E. Ribeiro Soriano, 2024. "Deconstructing involuntary financial exclusion: a focus on African SMEs," Small Business Economics, Springer, vol. 62(1), pages 285-305, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:18:y:2011:i:3:p:199-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.