The nexus of remittances, institutional quality, and financial inclusion

Saydaliyev H. B., Chin L., Oskenbayev Y.

ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA, vol.33, no.1, pp.3528-3544, 2020 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33 Issue: 1
  • Publication Date: 2020
  • Doi Number: 10.1080/1331677x.2020.1774795
  • Journal Name: ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, Business Source Elite, Business Source Premier, CAB Abstracts, Central & Eastern European Academic Source (CEEAS), EconLit, Geobase, INSPEC, Veterinary Science Database, Directory of Open Access Journals
  • Page Numbers: pp.3528-3544
  • Süleyman Demirel University Affiliated: No

Abstract

The present article adopted the dynamic panel data method to investigate the effect of the inflow of remittances on financial inclusion (FI), particularly focusing on high remittance-receiving developing countries between 2011 and 2018. The current research found that remittances that foster FI are associated with better institutional quality. The evidence revealed that the effect of remittances on FI is conditional upon individuals' perception of the institutions. Positive coefficient on the interaction terms indicates that the impact of remittances on FI can be enhanced in the recipient countries, if the public trusts the financial institutions. Hence, the overall results of the current research suggest that the impact of remittances on FI is conditional on institutions. On a final note, the policy implications of these findings are thoroughly evaluated at the end of this article.