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International remittances and financial inclusion in Sub-Saharan Africa, Volume 1
Author:Aga, Gemechu Ayana; Martinez Peria, Maria Soledad; Collection Title:Policy Research working paper ; no. WPS 6991
Country:Kenya; Senegal; Burkina Faso; Uganda; Nigeria; Africa; Date Stored:2014/07/30
Document Date:2014/07/01Document Type:Policy Research Working Paper
SubTopics:Access to Finance; Remittances; Debt Markets; Banks & Banking Reform; Population PoliciesLanguage:English
Major Sector:FinanceRel. Proj ID:1W-Lessons From The Global Crisis And The Recovery Process -- -- P146223;
Region:AfricaReport Number:WPS6991
Sub Sectors:Microfinance; SME Finance; Housing finance; Banking; Capital marketsVolume No:1

Summary: This paper uses World Bank survey data, including about 10,000 households in five countries -- Burkina Faso, Kenya, Nigeria, Senegal, and Uganda -- to investigate the link between international remittances and households' financial inclusion in Sub-Saharan Africa. The paper finds that receiving international remittances increases the probability that the household opens a bank account in all the five countries. This result is robust to controlling for the potential endogeneity of remittances, using as instruments indicators of the migrants' economic conditions in the destination countries.

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