TY  - BOOK
AU  - Ruiz-Arranz,Marta
AU  - Giuliano,Paola
AU  - Ruiz-Arranz,Marta
TI  - Remittances, Financial Development, and Growth
T2  - IMF Working Papers; Working Paper
SN  - 1451862539 :
SN  - 1018-5941
PY  - 2005///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Economic Growth of Open Economies
KW  - imf
KW  - Financial Development
KW  - Growth
KW  - Impact of Remittances
KW  - Migration
KW  - Remittance
KW  - China, People's Republic of
KW  - Dominican Republic
KW  - El Salvador
KW  - Mexico
KW  - Slovak Republic
N2  - There has been little systematic empirical study on the relationship between remittances and growth. This paper attempts to examine this relationship. Using a newly constructed crosscountry of data series for remittances covering a large sample of developing countries, we relate the interaction between remittances and financial development and its impact on growth. We analyze how a country's capacity to use remittances and its effectiveness in doing so might be influenced by local financial sector conditions. Given the difficulty of borrowing in developing countries, we explore the hypothesis that remittances can substitute for a lack of financial development and hence promote growth. The empirical analysis shows that remittances can promote growth in less financially developed countries. This relationship controls for the endogeneity of remittances and financial development using a Generalized Method of Moments (GMM) approach, does not depend on the particular measure of financial sector development used, and is robust to a number of sensitivity tests
UR  - http://elibrary.imf.org/view/IMF001/05668-9781451862539/05668-9781451862539/05668-9781451862539.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451862539
ER  -