TITLE:
Impact of Remittances on Financial Development: Revisiting the Evidence for ECOWAS Countries
AUTHORS:
Yaya Keho
KEYWORDS:
Remittances, Financial Development, Heterogeneity, Cross-Sectional Dependence, ECOWAS
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.1,
February
25,
2020
ABSTRACT: This study examines the impact of remittances on
financial development in selected West African countries over the period from
1980 to 2017. Contrary to previous panel studies which relied on standard panel
estimators, it uses an estimation method which controls both parameter
heterogeneity and cross-section dependence among countries. Remittance inflows
were found to reduce domestic credit to private sector whereas they contribute
to increasing money supply in the long run. Country-level results reveal,
however, considerable heterogeneity across countries.