The Role of Formal and Informal Remittances as the Determinants of Formal and Informal Financial Services
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F22%3A63549180" target="_blank" >RIV/70883521:28120/22:63549180 - isvavai.cz</a>
Result on the web
<a href="http://economic-research.pl/Journals/index.php/eq/article/view/2096" target="_blank" >http://economic-research.pl/Journals/index.php/eq/article/view/2096</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.24136/eq.2022.025" target="_blank" >10.24136/eq.2022.025</a>
Alternative languages
Result language
angličtina
Original language name
The Role of Formal and Informal Remittances as the Determinants of Formal and Informal Financial Services
Original language description
Research Background: The choice of financial services and remittances are important as they influence the livelihood of remittance recipients, who are mostly poor and financially excluded. In literature, extensive evidence suggests a positive impact of the size of remittances on access to financial inclusion and financial development of remittance-recipient countries. However, a concern of such studies is that they might provide a biased outcome as the available data of remittances tend to be formal, whereas informal remittances are difficult to observe. Hence, their evidence might not be applicable in developing countries where remittance transfer via informal channels is very popular. Research purpose: The main objective of this study is to examine the effect of the remittance channel (formal and informal) on the choice of formal, informal financial services of credit and savings of remittance recipients. Method: As our dependent variable is financial service which is a categorical variable (formal and informal), the paper will employ a multinomial logistic regression model to estimate the impact. The data employed in this analysis is from the Finscope survey conducted in Myanmar in 2013 and 2018. Myanmar is the best context for our study as it is one of a big migrant-sending countries and a developing country whose financial sector is significantly underdeveloped. Findings: Our findings show that formal remittances promote the use of formal financial services such as credit and savings. However, there is no evidence regarding women recipients` informal channels and formal financial services. Our evidence also suggests there is a need for the government of sending-migrant workers to transform informal remittances into formal ones by removing the barriers of formal remittance channels to promote the use of formal credit and saving among remittance-recipients who are poor and financial excluded.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Equilibrium. Quarterly Journal of Economics and Economic Policy
ISSN
1689-765X
e-ISSN
2353-3293
Volume of the periodical
17
Issue of the periodical within the volume
3
Country of publishing house
PL - POLAND
Number of pages
20
Pages from-to
727-746
UT code for WoS article
000868520300005
EID of the result in the Scopus database
2-s2.0-85139435478