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Remittances and Banking Sector Breadth and Depth : Evidence From Mexico / Demirguc-Kunt, Asli

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Demirguc-Kunt, Asli
Contributor:
Demirguc-Kunt, Asli
López Córdova, J. Ernesto.
Martinez Peria, Maria Soledad
Woodruff, Christopher
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Access to Finance.
Bank branches.
Banking services.
Banks.
Banks and Banking Reform.
Commercial banks.
Debt Markets.
Demand for credit.
Deposits.
Development bank.
Expenditures.
Finance and Financial Sector Development.
Financial development.
Financial systems.
Fixed costs.
Health, Nutrition and Population.
Households.
Inequality.
International bank.
Labor force participation.
Macroeconomics and Economic Growth.
Outreach.
Population Policies.
Remittance.
Remittances.
Source of income.
Wire transfers.
Local Subjects:
Access to Finance.
Bank branches.
Banking services.
Banks.
Banks and Banking Reform.
Commercial banks.
Debt Markets.
Demand for credit.
Deposits.
Development bank.
Expenditures.
Finance and Financial Sector Development.
Financial development.
Financial systems.
Fixed costs.
Health, Nutrition and Population.
Households.
Inequality.
International bank.
Labor force participation.
Macroeconomics and Economic Growth.
Outreach.
Population Policies.
Remittance.
Remittances.
Source of income.
Wire transfers.
Physical Description:
1 online resource (34 pages)
Place of Publication:
Washington, D.C., The World Bank, 2009
System Details:
data file
Summary:
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.

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