Remittances and Financial Inclusion : Evidence from El Salvador

This paper investigates the impact of remittances on financial inclusion. This is an important issue given recent studies showing that financial inclusion can have significant beneficial effects on households. Using household-level survey data for El Salvador, the authors examine the impact of remittances on households' use of savings and credit instruments from formal financial institutions. They find that although remittances have a positive impact on financial inclusion by promoting the use of deposit accounts, they do not have a significant and robust effect on the demand for and use of credit from formal institutions. If anything, by relaxing credit constraints, remittances might reduce the need for external financing from financial institutions, while at the same time increasing the demand for savings instruments.

Bibliographic Details

Main Authors:	Anzoategui, Diego, Demirgüç-Kunt, Asli, Martínez Pería, María Soledad
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2011-10-01
Subjects:	ACCESS TO BANK, ACCESS TO BANK ACCOUNTS, ACCESS TO CREDIT, ACCESS TO FINANCIAL SERVICES, ACCESS TO SAVINGS, AGRICULTURAL ACTIVITIES, AGRICULTURAL ACTIVITY, AGRICULTURE, AMOUNT OF REMITTANCES, BALANCE OF PAYMENT, BALANCE OF PAYMENTS, BANK BRANCHES, BANK CREDIT, BANK DEPOSITS, BANK OFFICE, BANK POLICY, BANKING SECTOR, BANKING SYSTEM, BANKS, BIG CITIES, BUSINESS FORMATION, CAPITA INCOME, CAPITAL FLOWS, CAPITAL MARKET, CENTRAL BANK, CHECKING ACCOUNT, CHILD HEALTH, CIVIL WAR, COLLATERAL, COMMERCIAL BANKS, CONSUMER LOANS, COOPERATIVES, COSTS OF REMITTANCES, CREDIT ACCESS, CREDIT CONSTRAINTS, CREDIT PRODUCTS, CREDIT UNIONS, DATA ON REMITTANCES, DEMAND FOR CREDIT, DEMAND FOR SAVINGS, DEMOGRAPHIC CHARACTERISTICS, DEPOSIT, DEPOSIT ACCOUNT, DEPOSIT ACCOUNTS, DETERMINANTS OF REMITTANCES, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DEVELOPMENT CENTER, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DIVIDENDS, DUMMY VARIABLE, DUMMY VARIABLES, DURABLES, ECONOMETRIC MODELS, ECONOMIC ACTIVITIES, ECONOMIC CONDITIONS, ECONOMIC GROWTH, ECONOMIC RESEARCH, ECONOMIC SELF-SUFFICIENCY, EDUCATIONAL ATTAINMENT, EFFECT OF REMITTANCES, EFFECTS OF REMITTANCES, EMIGRATION, EMPLOYERS, EMPLOYMENT STATUS, EMPOWERMENT, EXCHANGE RATE, EXCLUSION, EXPENDITURE, EXPORTS, EXTERNAL FINANCING, FINANCE COMPANY, FINANCIAL ACCESS, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTION, FINANCIAL INTERMEDIATION, FINANCIAL LITERACY, FINANCIAL MARKETS, FINANCIAL MARKETS DEVELOPMENT, FINANCIAL REFORMS, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL STUDIES, FINANCIAL SYSTEM, FIXED COSTS, FOREIGN BANK, FOREIGN BANK ENTRY, FORMAL FINANCIAL INSTITUTION, FORMAL FINANCIAL INSTITUTIONS, FUTURE RESEARCH, GDP, GDP PER CAPITA, GENDER, GLOBAL DEVELOPMENT, GLOBALIZATION, HEAD OF HOUSEHOLD, HOLDING, HOST COUNTRY, HOUSEHOLD FIXED EFFECTS, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HOUSEHOLD SURVEYS, HOUSEHOLDS, HUMAN CAPITAL, IMPACT OF MIGRATION, IMPACT OF REMITTANCES, IMPORTANCE OF REMITTANCES, INCOME INEQUALITY, INEQUALITY, INFANT, INFORMAL CHANNELS, INSTRUMENT, INSURANCE, INTERNATIONAL BANK, INTERNATIONAL MIGRANTS, INTERNATIONAL MIGRATION, INTERNATIONAL REMITTANCES, KINSHIP, LAND OWNERSHIP, LARGE CITIES, LIVING STANDARDS, LOAN, MACROECONOMIC PERFORMANCE, MENTAL HEALTH, MICRO-ENTERPRISES, MICROCREDIT, MICROENTERPRISES, MICROFINANCE, MIGRANT, MIGRANT REMITTANCES, MIGRANTS, MIGRANTS SENDING REMITTANCES, MIGRATION, MIGRATION FLOWS, MIGRATION PATTERNS, MONETARY FUND, MORTALITY, OFFICIAL DEVELOPMENT ASSISTANCE, PENSIONS, PER CAPITA INCOME, POLICY DISCUSSIONS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POSITIVE COEFFICIENT, POSITIVE EFFECTS, PRIVATE CAPITAL, PRIVATE CREDIT, PRIVATIZATION, PRODUCTIVE INVESTMENT, PROFITABILITY, PROGRESS, REAL GDP, REAL INCOME, RECEIPT, RECIPIENT HOUSEHOLDS, REMITTANCE, REMITTANCE FLOW, REMITTANCE FLOWS, REMITTANCE RECIPIENTS, REMITTANCES, REMITTANCES FLOWS, RESERVE, RESPECT, ROLE OF REMITTANCES, SAVINGS, SAVINGS ACCOUNT, SAVINGS INSTRUMENTS, SAVINGS PRODUCT, SAVINGS PRODUCTS, SEND REMITTANCES, SOCIAL DEVELOPMENT, SOCIAL SCIENCE, SOURCE OF CREDIT, SPOUSE, TEMPORARY MIGRATION, TERM DEPOSITS, TOTAL AMOUNT OF REMITTANCES, VALUE OF REMITTANCES, VOLATILE INCOMES, WEALTH,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111006135759 http://hdl.handle.net/10986/3603
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