Impact of Remittances on Financial Development: Revisiting the Evidence for ECOWAS Countries

摘要

This study examines the impact of remittances onfinancial development in selected West African countries over the period from1980 to 2017. Contrary to previous panel studies which relied on standard panelestimators, it uses an estimation method which controls both parameterheterogeneity and cross-section dependence among countries. Remittance inflowswere found to reduce domestic credit to private sector whereas they contributeto increasing money supply in the long run. Country-level results reveal,however, considerable heterogeneity across countries.