Do Remittances Enhance Financial Development in Transitional Markets?

• Authors: Kunofiwa Tsaurai , Patience Hlupo

Title variants

Czy przekazy pieniężne wzmacniają rozwój finansowy na rynkach przejściowych?

• Languages of publication: EN

Abstracts

EN

The paper explored (1) the impact of remittances on financial development and (2) whether the interaction between remittances and human capital development had an influence on financial development in transitional economies using the dynamic GMM approach, with data ranging from 1996 to 2014. Remittances were found to have had a non‑significant positive influence on financial development in transitional economies when stock market turnover, stock market value traded, domestic credit to the private sector by banks, and public bond sector development were used as measures of financial development. When stock market capitalisation, domestic credit to the private sector by financial sector, and private bond sector development were used as measures of financial development, remittances had a non‑significance negative effect on financial development. Using all other measures of financial development except stock market capitalisation (which produced a negative sign), the interaction between remittances and human capital development had an insignificant positive influence on financial development. Transitional economies are therefore urged to avoid over‑relying on remittance inflow and human capital development as sources of financial development.

PL

W artykule przeanalizowano (1) wpływ przekazów pieniężnych na rozwój finansowy oraz (2) zbadano czy interakcja między przekazami pieniężnymi a rozwojem kapitału ludzkiego miała wpływ na rozwój finansowy w gospodarkach przejściowych. Wykorzystano dynamiczne podejście GMM w oparciu o dane z okresu 1996–2014. Przyjęcie jako miar rozwoju finansowego wartości obrotów giełdowych, wolumenu obrotów na rynku akcji, kredytów krajowych dla sektora prywatnego udzielanych przez banki oraz rozwoju sektora obligacji publicznych, pozwoliło na wykazanie, że przekazy pieniężne miały nieistotny pozytywny wpływ na rozwój finansowy w gospodarkach przejściowych. Kiedy jako mierniki rozwoju finansowego przyjęto kapitalizację rynku akcji, kredyty krajowe dla sektora prywatnego udzielane przez sektor finansowy oraz rozwój sektora obligacji prywatnych, przekazy pieniężne nie miały istotnego negatywnego wpływu na rozwój finansowy. Zastosowanie wszystkich innych miar rozwoju finansowego, z wyjątkiem kapitalizacji rynku akcji (która dawała znak ujemny) pozwoliło na wykazanie, że interakcja między przekazami pieniężnymi a rozwojem kapitału ludzkiego miała nieznaczny pozytywny wpływ na rozwój finansowy. Wzywa się zatem gospodarki przejściowe, aby unikały nadmiernego polegania na wpływach z przekazów pieniężnych i na rozwoju kapitału ludzkiego jako źródłach rozwoju finansowego.

Keywords

EN

remittances; financial development; transitional economies

PL

przekazy pieniężne; rozwój finansowy; gospodarki przejściowe; przekazy pieniężne; rozwój finansowy; gospodarki przejściowe

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Comparative Economic Research. Central and Eastern Europe
• Year: 2019
• Volume: 22
• Issue: 4
• Pages: 73-89

Dates

published

2019-12-30

Contributors

author

Kunofiwa Tsaurai

• Ph.D., Associate Professor at the University of South Africa, Department of Finance, Risk Management and Banking, Pretoria, South Africa

author

Patience Hlupo

• Lecturer at Bindura University of Technology, Bindura, Zimbabwe

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Identifiers

DOI

10.2478/cer-2019-0033