Does financial development mediate the impact of remittances on sustainable human capital investment? New insights from SSA countries

Bare, Uweis Abdulahi Ali; Bani, Yasmin; Ismail, Normaz Wana; Rosland, Anitha

doi:10.1080/23322039.2022.2078460

Cited by 14 publications

(3 citation statements)

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“…Efficient and widespread internet connectivity, mobile phone ownership, improved mobile internet penetration, and affordable cost of using mobile internet are crucial elements to increase the utilization of mobile money for remittance transactions (Chokossa 2023). A well-functioning financial market facilitates the inflow of remittances through lower transaction costs (Bang, Mitra, and Wunnava 2013), provides access to financial services (Orozco and Yansura 2015), and creates options for sending and receiving remittances (Bare et al 2022). Europe .…”

Section: Merchantmentioning

confidence: 99%

Asian Economic Integration Report 2024

2024

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The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they v TABLES, FIGURES, AND BOXES TABLES 1.1

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Section: Merchantmentioning

confidence: 99%

Asian Economic Integration Report 2024

2024

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“…A pessimistic view argued that remittances receiving households mostly go for conspicuous consumption as they do not spend most of these transferred amounts for productive uses (Chami et al, 2003;Yaseen, 2012). In contrast, an optimistic view of Migration and Development Theory argues that migrant families mostly utilized their remittances in productive manner, investing in education, health as well as improving their socio-economic conditions (Adams & Page, 2005;Ali Bare et al, 2022;Dash, 2020;De & Ratha, 2012;Mohanty et al, 2014;Song et al, 2021;Szabo et al, 2018Szabo et al, , 2022. Chami et al (2003) found that remittances mostly were spent on regular consumption, with a smaller portion spent on savings and investments.…”

Section: Studies On Remittances In Bangladeshmentioning

confidence: 99%

International Remittances and Household Expenditure Patterns in Bangladesh

Dey,

Ahmed

2024

The Indian Economic Journal

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The study endeavours to investigate how the transfers of international remittances influence the expenditure behaviour of returnee migrant families in Bangladesh. The primary data were collected using the multi-stage stratified random sampling technique through a structured questionnaire from Tangail and Comilla on several expenditure characteristics of migrants. Propensity score matching (PSM) method is employed to assess the impact of remittances on expenditure patterns of returnee migrant households through the estimation of average treatment effects on the treated. The PSM technique has allowed us to evaluate the impact of remittances on several expenditure categories such as food, non-food, education, medical and so on. The study findings divulge that remittances exhibit a significant and positive impact on poverty reduction since they have contributed a lot in terms of income generation and increment of consumption expenditures. Moreover, compared to non-migrant families, migrant families are more exposed to positive behavioural transformations because of their spending on productive investments like non-durable goods, education and health care. Therefore, the findings underline the optimistic view of migration and development theory that foreign remittances support to increase the investments both in the physical and human capital of migrant families as well as to improve the wellbeing of Bangladeshi people. JEL Codes: D10, F24, O15

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“…Nigeria has seen a significant growth in the flow of remittances from its diaspora populations around the world. Nigeria is the most populous country in Africa and one of the top beneficiaries of remittances on the continent (Ali- Bare, Bani, Ismail, & Rosland, 2022). Researchers and decision-makers have been quite interested in this phenomenon, leading to investigations into the connection between money remittances and Nigerian economic progress (Adediran, Okunade & Aor, 2022;Adams, & Page, 2005).…”

Section: Introductionmentioning

confidence: 99%

Financial Remittance and Growth in Nigeria: Does Financial Development Matter?

Okunade,

Afolabi,

Adeyemi

et al. 2023

NIU HMS

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This study explores the complex relationship between financial remittances, financial development, and economic growth in Nigeria by investigating whether financial development serves as a mediator in the effect of remittances on Nigeria's economic performance. Thus, this present study focuses on the interactive effect of financial remittances and financial development on economic growth in Nigeria using secondary data for the periods of 1984 to 2022. The results of the Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) showed that, individually, remittances do not significantly increase economic growth in Nigeria, but when we considered the moderated effect of financial development, remittances become growth-enhancing in Nigeria. The findings reveal a positive and statistically significant interactive effect of remittances and financial development on economic growth, confirming the role of remittances as a source of external finance that stimulates domestic investment and consumption. Furthermore, the study provides compelling evidence supporting the mediating role of financial development in this relationship. A well-developed financial sector, characterized by depth, efficiency, and access, enhances the positive impact of remittances on economic growth. In light of these findings, the study underscores the importance of policies aimed at fostering financial inclusion, promoting financial literacy, and expanding access to formal financial services. These measures empower remittance recipients to make informed and productive financial decisions, thereby maximizing the developmental benefits of remittances. Keywords: Remittances; Growth; Financial Development; Nigeria; DOLS.

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Does financial development mediate the impact of remittances on sustainable human capital investment? New insights from SSA countries

Cited by 14 publications

References 50 publications

Asian Economic Integration Report 2024

Asian Economic Integration Report 2024

International Remittances and Household Expenditure Patterns in Bangladesh

Financial Remittance and Growth in Nigeria: Does Financial Development Matter?

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