{
  "title": "Remittances, Financial Development, and Growth",
  "publication": "IMF Working Papers, December 1, 2005",
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  "summary": "There has been little systematic empirical study on the relationship between remittances and growth. This paper attempts to examine this relationship.",
  "sections": [
    {
      "heading": "Summary and research question",
      "content": "- There has been little systematic empirical study on the relationship between remittances and growth. This paper attempts to examine this relationship.\n- Uses a newly constructed crosscountry data series for remittances covering a large sample of developing countries.\n- Analyzes how a country's capacity to use remittances and its effectiveness in doing so might be influenced by local financial sector conditions.\n- Explores the hypothesis that remittances can substitute for a lack of financial development and hence promote growth, given the difficulty of borrowing in developing countries."
    },
    {
      "heading": "Empirical approach and methodology",
      "content": "- Controls for the endogeneity of remittances and financial development using a Generalized Method of Moments (GMM) approach.\n- Examines the interaction between remittances and financial development and its impact on growth.\n- Tests robustness across different measures of financial sector development and a number of sensitivity tests."
    },
    {
      "heading": "Key findings",
      "content": "- Remittances can promote growth in less financially developed countries.\n- The relationship:\n  - Controls for endogeneity using GMM.\n  - Does not depend on the particular measure of financial sector development used.\n  - Is robust to a number of sensitivity tests."
    },
    {
      "heading": "Subject classifications and keywords",
      "content": "- Subject: Balance of payments statistics, Commercial banks, Credit, Financial sector development, Remittances\n- Keywords: balance of payments, impact of remittance, remittance, remittance variable, WP\n\n---\n\n Content in this bundle\n\n- wp05234\n  - wp05234 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp05234 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/remittances-financial-development-and-growth-18607"
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    "Authors: Marta Ruiz-Arranz, Paola Giuliano",
    "Published: December 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451862539.001",
    "There has been little systematic empirical study on the relationship between remittances and growth. This paper attempts to examine this relationship.",
    "Uses a newly constructed crosscountry data series for remittances covering a large sample of developing countries.",
    "Analyzes how a country's capacity to use remittances and its effectiveness in doing so might be influenced by local financial sector conditions.",
    "Explores the hypothesis that remittances can substitute for a lack of financial development and hence promote growth, given the difficulty of borrowing in developing countries.",
    "Controls for the endogeneity of remittances and financial development using a Generalized Method of Moments (GMM) approach.",
    "Examines the interaction between remittances and financial development and its impact on growth.",
    "Tests robustness across different measures of financial sector development and a number of sensitivity tests.",
    "Remittances can promote growth in less financially developed countries.",
    "The relationship:",
    "Subject: Balance of payments statistics, Commercial banks, Credit, Financial sector development, Remittances",
    "Keywords: balance of payments, impact of remittance, remittance, remittance variable, WP",
    "**_wp05234**"
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