Remittances and Banking Sector Breadth and Depth: Evidence from Mexico

Despite the importance of remittances to developing countries, their impact on banking sector breadth and depth in recipient countries has been largely unexplored. We examine this topic using municipality-level data on the fraction of households receiving remittances and on measures of banking bread...

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Main Authors:	Demirguc-Kunt, Asli, Cordova, Ernesto Lopez, Martinez Peria, Maria Soledad, Woodruff, Christopher
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Remittances F240 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190
Online Access:	http://hdl.handle.net/10986/5633

id	okr-10986-5633
recordtype	oai_dc
spelling	okr-10986-56332021-04-23T14:02:23Z Remittances and Banking Sector Breadth and Depth: Evidence from Mexico Demirguc-Kunt, Asli Cordova, Ernesto Lopez Martinez Peria, Maria Soledad Woodruff, Christopher Remittances F240 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 Despite the importance of remittances to developing countries, their impact on banking sector breadth and depth in recipient countries has been largely unexplored. We examine this topic using municipality-level data on the fraction of households receiving remittances and on measures of banking breadth and depth for Mexico. We find that remittances are strongly associated with greater banking breadth and depth, increasing the number of branches and accounts per capita and the amount of deposits to GDP. These effects are significant both statistically and economically, and are robust to the potential endogeneity of remittances, inclusion of a wide range of controls and even municipal fixed effects specifications using an alternative panel data set from a sample of municipalities. 2012-03-30T07:33:46Z 2012-03-30T07:33:46Z 2011 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/5633 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Remittances F240 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190
spellingShingle	Remittances F240 Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 International Linkages to Development Role of International Organizations O190 Demirguc-Kunt, Asli Cordova, Ernesto Lopez Martinez Peria, Maria Soledad Woodruff, Christopher Remittances and Banking Sector Breadth and Depth: Evidence from Mexico
geographic_facet	Mexico
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Despite the importance of remittances to developing countries, their impact on banking sector breadth and depth in recipient countries has been largely unexplored. We examine this topic using municipality-level data on the fraction of households receiving remittances and on measures of banking breadth and depth for Mexico. We find that remittances are strongly associated with greater banking breadth and depth, increasing the number of branches and accounts per capita and the amount of deposits to GDP. These effects are significant both statistically and economically, and are robust to the potential endogeneity of remittances, inclusion of a wide range of controls and even municipal fixed effects specifications using an alternative panel data set from a sample of municipalities.
format	Journal Article
author	Demirguc-Kunt, Asli Cordova, Ernesto Lopez Martinez Peria, Maria Soledad Woodruff, Christopher
author_facet	Demirguc-Kunt, Asli Cordova, Ernesto Lopez Martinez Peria, Maria Soledad Woodruff, Christopher
author_sort	Demirguc-Kunt, Asli
title	Remittances and Banking Sector Breadth and Depth: Evidence from Mexico
title_short	Remittances and Banking Sector Breadth and Depth: Evidence from Mexico
title_full	Remittances and Banking Sector Breadth and Depth: Evidence from Mexico
title_fullStr	Remittances and Banking Sector Breadth and Depth: Evidence from Mexico
title_full_unstemmed	Remittances and Banking Sector Breadth and Depth: Evidence from Mexico
title_sort	remittances and banking sector breadth and depth: evidence from mexico
publishDate	2012
url	http://hdl.handle.net/10986/5633
_version_	1764395754532634624

Remittances and Banking Sector Breadth and Depth: Evidence from Mexico

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