Deposit Insurance, Remittances, and Dollarization: Survey-Based Evidence from a Top Remittance-Receiving Country

23 Pages Posted: 9 Aug 2017

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Maxym Kryshko

University of Pennsylvania - Department of Economics

Date Written: June 2017

Abstract

The paper uses a unique survey of remittance-receiving individuals from Tajikistan to study the impact of policy awareness on consumer behavior. The results show that knowledge of deposit insurance encourages the use of formal channels for transmitting remittances and reduces dollarization. Given the size and importance of remittances in Tajikistan, improving financial literacy and better publicizing details of the social safety net may encourage a more frequent use of formal channels for transferring remittances and reduce reliance on foreign exchange for transaction purposes. This is likely to improve bank profitability, enhance financial stability, and improve access to finance.

Keywords: Remittances, Tajikistan, Middle East, Deposit insurance, Dollarization, Government Policy and Regulation

JEL Classification: O17, G28

Suggested Citation

Grigorian, David A. and Kryshko, Maxym, Deposit Insurance, Remittances, and Dollarization: Survey-Based Evidence from a Top Remittance-Receiving Country (June 2017). IMF Working Paper No. 17/132. Available at SSRN: https://ssrn.com/abstract=3014043

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Maxym Kryshko

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
(215) 746-0363 (Phone)

HOME PAGE: http://www.sas.upenn.edu/~mkryshko

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