References (50)


Citations (2)



Remittances and Financial Openness

Michel A. R. Beine

University of Luxemburg; CESifo (Center for Economic Studies and Ifo Institute)

Elisabetta Lodigiani

Ca Foscari University of Venice; University of Milan; University of Milan - Centro Studi Luca d'Agliano (LdA)

Robert Vermeulen

De Nederlandsche Bank

June 17, 2010

CESifo Working Paper Series No. 3090

Remittances have greatly increased during recent years, becoming an important and reliable source of funds for many developing countries. Therefore, there is a strong incentive for receiving countries to attract more remittances, especially through formal channels that turn to be either less expensive or less risky. One way of doing so is to increase their financial openness, but this policy option might generate additional costs in terms of macroeconomic volatility. In this paper we investigate the link between remittance receipts and financial openness. We develop a small model and statistically test for the existence of such a relationship with a sample of 66 mostly developing countries from 1980-2005. Empirically we use a dynamic generalized ordered logit model to deal with the categorical nature of the financial openness policy. We apply a two-step method akin to two stage least squares to deal with the endogeneity of remittances and potential measurement errors. We find a strong positive statistical and economic effect of remittances on financial openness.

Number of Pages in PDF File: 50

Keywords: remittances, financial openness, government policy

JEL Classification: E60, F24, F41, O10

Open PDF in Browser Download This Paper

Date posted: June 20, 2010  

Suggested Citation

Beine, Michel A. R. and Lodigiani, Elisabetta and Vermeulen, Robert, Remittances and Financial Openness (June 17, 2010). CESifo Working Paper Series No. 3090. Available at SSRN: http://ssrn.com/abstract=1626130

Contact Information

Michel A. R. Beine (Contact Author)
University of Luxemburg ( email )
L-1511 Luxembourg
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Elisabetta Lodigiani
Ca Foscari University of Venice ( email )
Dorsoduro 3246
Venice, Veneto 30123
University of Milan ( email )
Via Festa del Perdono, 7
Milan, 20122
University of Milan - Centro Studi Luca d'Agliano (LdA)
Via P. Amedeo 34
Milano, Mi 20122
Robert Vermeulen
De Nederlandsche Bank ( email )
P.O. Box 98
1000 AB Amsterdam

Feedback to SSRN

Paper statistics
Abstract Views: 266
Downloads: 38
References:  50
Citations:  2
People who downloaded this paper also downloaded:
1. Does Financial Liberalization Spur Growth?
By Geert Bekaert, Campbell Harvey, ...

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.375 seconds