Remittances, Banks and Stock Markets: Panel Evidence from Developing Countries

dc.contributor.authorIssahaku, H.
dc.contributor.authorAbor, J.Y.
dc.contributor.authorHarvey, S.
dc.date.accessioned2018-11-06T08:17:43Z
dc.date.available2018-11-06T08:17:43Z
dc.date.issued2017
dc.description.abstractThe study investigates dynamic and causal linkages among international remittance inflows, banking sector development and stock market development in a large panel of developing countries. We use two stage least squares and impulse response functions to shed light on the remittance-bank-stock market nexus. We find that remittances promote banking sector development in low remittance receiving countries, but not in high remittance receiving economies. We establish a bi-causal negative link between stock markets and remittances in countries with developed banking systems. In low remittance recipient countries, remittances decrease stock market development; however, in remittance dependent countries, remittances promote stock market development. Again, stock market development promotes remittance inflows in remittance dependent countries, while obstructing it in low remittance recipient countries. We suspect lingering doubts about the quality of developing country stock markets to be behind this latter result, though the fact that most developing countries’ financial systems are bank based could also play a role.en_US
dc.identifier.citationIssahaku, Haruna & Abor, Joshua Yindenaba & Harvey, Simon Kwadzogah, 2017. "Remittances, banks and stock markets: Panel evidence from developing countries," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1413-1427.en_US
dc.identifier.otherdoi: 10.1016/j.ribaf.2017.07.080
dc.identifier.urihttp://ugspace.ug.edu.gh/handle/123456789/25328
dc.language.isoenen_US
dc.publisherELSEVIERen_US
dc.subjectBanking sector developmenten_US
dc.subjectremittancesen_US
dc.subjectTwo stage least squaresen_US
dc.subjectDeveloping countriesen_US
dc.subjectStock market developmenten_US
dc.titleRemittances, Banks and Stock Markets: Panel Evidence from Developing Countriesen_US
dc.typeArticleen_US

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