Remittances, Financial Development and Economic Growth of Different Financial Systems: A Panel Data Analysis

[vc_row][vc_column width=”1/4″][vc_single_image image=”11608″ img_size=”421×582″][/vc_column][vc_column width=”3/4″ css=”.vc_custom_1683003920554{margin-top: -50px !important;}”][thim-heading title=”Remittances, Financial Development and Economic Growth of Different Financial Systems: A Panel Data Analysis” title_uppercase=”” size=”h3″ title_custom=”custom” font_weight=”” clone_title=”” line=””][vc_row_inner][vc_column_inner width=”1/2″][vc_column_text] Jannatul Ferdaous, PhD
Published: 20 July, 2021[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]Journal of Banking & Financial Services
Volume 14 Number 1 & 2 December 2022
DOI : https://doi.org/10.57143/JBFS130107
ISSN : 1990-5157[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text]

Abstract

This paper investigates the relationship between remittances and the development of a financial system in impacting economic growth by using a panel dataset of 44 countries from 2001 to 2019. The paper examines the effects of remittance and financial development on the economic growth of different financial systems by employing Pooled OLS, Fixed Effects, and Random Effects estimation methods.The results from the Fixed Effects analysis suggest a significant negative effect of remittance on economic growth and no significant effect of the different variables taken to represent financial development. System Generalized Method of Moments (SGMM) accounts for the endogeneity between remittance and financial development and any other endogenous errors created within the model. The SGMM findings show no significant effect of remittance or financial development. With the incorporation of financial systems into the equation, it is evident that the impact of financial development varied among the two types of financial systems.

Keywords: Economic Growth; Financial Development; Financial System; Remittances; SGMM[/vc_column_text][vc_column_text]Notes on Contributor
Associate Professor, Department of Business Administration in Finance & Banking, Bangladesh University of Professionals, Email: jannatul.ferdaous@bup.edu.bd[/vc_column_text][vc_btn title=”View Full Articles” align=”left” link=”url:https%3A%2F%2Fbanins.du.ac.bd%2Fwp-content%2Fuploads%2F2023%2F06%2F7-Remittances-Financial-Development-and-Economic-Growth.pdf”][/vc_column][/vc_row]