The Role of Formal and Informal Remittances as the Determinants of Formal and Informal Financial Services

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

The Role of Formal and Informal Remittances as the Determinants of Formal and Informal Financial Services

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

The Role of Formal and Informal Remittances as the Determinants of Formal and Informal Financial Services

Popis výsledku anglicky

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.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Equilibrium. Quarterly Journal of Economics and Economic Policy

ISSN

1689-765X

e-ISSN

2353-3293

Svazek periodika

17

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

PL - Polská republika

Počet stran výsledku

20

Strana od-do

727-746

Kód UT WoS článku

000868520300005

EID výsledku v databázi Scopus

2-s2.0-85139435478