Remittances, banks and stock markets: Panel evidence from developing countries

Issahaku, Haruna; Abor, Joshua Yindenaba; Harvey, Simon K.

doi:10.1016/j.ribaf.2017.07.080

Cited by 29 publications

(18 citation statements)

References 20 publications

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“…When monetary policy is conducted such that price stability is attained and price controls are removed or minimised, market distortions are minimal, firms can plan with more certainty, price allocation becomes more efficient, and financial institutions and systems flourish. These possible explanations for a negative effect of remittances on finance agree with Aggarwal et al (2011), Brown et al (2013) and Issahaku et al (2017). Among the control variables, only financial openness is significant with a positive coefficient as expected.…”

Section: Analysis and Discussion Of Resultssupporting

confidence: 78%

“…A recent study by Bettin, Presbitero and Spatafora (2015) explains how remittances rescue households in their most vulnerable moments. The finding that remittances are negatively associated with financial development indicators is in accord with Brown et al (2013) and Issahaku et al (2017). Note: Financial development (FD_INDEX) is the dependent variable in all models.…”

Section: Analysis and Discussion Of Resultssupporting

confidence: 52%

“…Indeed, there is as yet no study that tests this hypothesis. However, there are studies that examine the impact of remittances on financial development (see Issahaku, Abor & Harvey 2017;Aggarwal, Demirgüç-Kunt & Pería, 2011;Billmeier & Massa, 2009;Chowdhury, 2011;Demirgüç-Kunt, Córdova, Pería & Woodruff, 2011;Gupta, Pattillo & Wagh, 2009); and studies that investigate the impact of monetary policy on financial development (Bernanke & Kuttner, 2005; De Graeve, Kick & Koetter, 2008; Elbourne & de Haan, 2006;Li, İşcan & Xu, 2010). The contribution of this paper is threefold: first, to the best of the author's knowledge, this is the first attempt at examining the interactive effect of remittances and monetary policy on financial development.…”

Section: Introductionmentioning

confidence: 96%

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Harnessing international remittances for financial development: the role of monetery policy

Issahaku¹

2019

Ghana J. Dev. Stud.

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This study investigates how remittances and monetary policy independently and interactively shape the financial system of developing countries. It employs single equation instrumental variable based estimation procedures to test the hypothesis that, to boost financial development, remittances require a complementary domestic monetary policy framework which ensures price stability while limiting price distortions. The results show that remittances stimulate financial development only in countries with a favourable monetary environment. Building on these results and employing various indicators of financial development, the results suggest that remittances rise to cushion migrant households from the repercussions of poor financial intermediation, weak institutions and unfavourable business environment in the home country. By extension, the findings are germane to monetary and financial policy in developing countries.

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Section: Analysis and Discussion Of Resultssupporting

confidence: 78%

Section: Analysis and Discussion Of Resultssupporting

confidence: 52%

Section: Introductionmentioning

confidence: 96%

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Harnessing international remittances for financial development: the role of monetery policy

Issahaku¹

2019

Ghana J. Dev. Stud.

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“…Egy 11 ország 14 hazautalás-specifikus, lakossági, kérdőíves adatfelvételének adatait elemző kutatás szerint a magasabb iskolai végzettséggel rendelkező migránsok nagyobb mértékben támogatják az otthon maradottakat (Bollard et al 2009). Issahaku et al (2017) egy 60 ország (köztük Magyarország) adatait feldolgozó kutatás alapján arra a következtetésre jutott, hogy a hatékonyan működő kötvénypiacok mérséklik a hazautalásokat a fejlett országokban, ugyanakkor pozitív hatással vannak rájuk a fejlődő országokban.…”

Section: Hazautalások a Nemzetközi Szakirodalombanunclassified

Hazautalások Magyarországra – egy új adatfelvétel első eredményei

Kajdi¹

2018

Hitelintézeti szemle

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“…to remit (Bollard et al 2009). Based on a survey processing the data of 60 countries (including Hungary), Issahaku et al (2017) concluded that efficiently functioning bond markets subdue remittances in developed countries but promote them in developing countries.…”

Section: Studies László Kajdimentioning

confidence: 99%

Remittances – First Results of a New Survey

Kajdi¹

2018

Hitelintézeti szemle

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With the surge in emigration, the level of support provided by Hungarians living and working abroad to the households remaining in the home country has come to the foreground both in Hungarian public discourse and scientific research. For the most part, the research focuses on the contribution of remittances to the economy of developing countries, and only a few studies address the role of these funds in the context of migration processes within the European Union. In the course of 2017, in cooperation with the Hungarian Central Statistical Office, the Magyar Nemzeti Bank conducted a survey on this subject under the title "Family Assistance". For the first time, as a supplement to macrostatistics-based estimates this survey provides an opportunity to glean information about the underlying factors of remittances and about the characteristics of the senders as well as the receiving households. Initial results indicate, among other things, that around one fifth of emigrants and more than 65,000 households in Hungary are affected by the phenomenon, and support from abroad is an important source of income for a significant portion of households.

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Remittances, banks and stock markets: Panel evidence from developing countries

Cited by 29 publications

References 20 publications

Harnessing international remittances for financial development: the role of monetery policy

Harnessing international remittances for financial development: the role of monetery policy

Hazautalások Magyarországra – egy új adatfelvétel első eredményei

Remittances – First Results of a New Survey

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