Remittances and banking sector breadth and depth : evidence from Mexico
Lugar y fecha de publicación: México - Junio del 2009.
Documento del Banco Mundial. Grupo de Investigación para el Desarrollo. Equipo de Finanzas y el sector Privado.
Nota: Documento en Idioma Inglés.
Despite the rising volume of remittances flowing to developing countries, their impact on banking sector breadth and depth in recipient countries has been largely unexplored. The authors examine this topic using municipio-level data on the fraction of households that receive remittances and on measures of banking breadth and depth for Mexico. They find that remittances are strongly associated with greater banking breadth and depth, increasing the number of branches and accounts per capita and the ratio of deposits to gross domestic product. These effects are significant both statistically and economically, even after conducting robustness tests and addressing the potential endogeneity of remittances.
Authors:Demirguc-Kunt, Asli; Lopez Cordova, Ernesto; Martinez Peria, Maria Soledad; Woodruff, Christopher.
Number of Pages: 34
Language: English.
Credits and original source: World Bank
WPS4983.pdf