The impact of remittances on financial sector development: An exploration in the SADC region

Simple item page
dc.contributor.advisorBiekpe, Nicholasen_ZA
dc.contributor.authorDenoon-Stevens, Catherine Aen_ZA
dc.date.accessioned2018-11-06T14:03:36Z
dc.date.available2018-11-06T14:03:36Z
dc.date.issued2013en_ZA
dc.description.abstractRemittances received from migrants abroad have become one of the largest sources of external finance for developing countries. It has been argued that a particular impact of this influential flow is the stimulation of financial sector development. However, current research has been mainly based at a broad level across the developing world. This paper investigates whether this consensus holds true when examined at a sub-regional level within Sub-Saharan Africa. It is an important question given the extensive literature documenting the direct growth enhancing effect of financial development, and consequently, poverty reduction. In particular, annual data from 11 countries in the South African Development Community (SADC) are analysed from 1990 to 2011 using the panel data analysis techniques of fixed and random effects models, a Generalised Methods of Moments (GMM) dynamic framework (Arellano & Bover, 1995) and Instrumental Variables (IV) Estimations (Baum, Schaffer & Stillman, 2003). Three indicators of financial sector development are analysed, namely: the level of bank deposits, near money (M2) and credit intermediated by the local banking sector. Remittances are found to have a largely negative and insignificant impact on financial sector development in SADC over the period of study. This contradicts the findings of the current literature on this topic. The implications of this are noteworthy as it adds evidence that the model currently held in the literature (i.e. that remittances have a positive and significant relationship on financial sector development) is not robust at the less smoothed level of a subregional scale. But further, it provides evidence to motivate the further exploration of the impact of measurement errors of remittance flows. Recommendations for further research are provided on the basis of both these possible causes.en_ZA
dc.identifier.apacitationDenoon-Stevens, C. A. (2013). <i>The impact of remittances on financial sector development: An exploration in the SADC region</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Research of GSB. Retrieved from http://hdl.handle.net/11427/29009en_ZA
dc.identifier.chicagocitationDenoon-Stevens, Catherine A. <i>"The impact of remittances on financial sector development: An exploration in the SADC region."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Research of GSB, 2013. http://hdl.handle.net/11427/29009en_ZA
dc.identifier.citationDenoon-Stevens, C. 2013. The impact of remittances on financial sector development: An exploration in the SADC region. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Denoon-Stevens, Catherine A AB - Remittances received from migrants abroad have become one of the largest sources of external finance for developing countries. It has been argued that a particular impact of this influential flow is the stimulation of financial sector development. However, current research has been mainly based at a broad level across the developing world. This paper investigates whether this consensus holds true when examined at a sub-regional level within Sub-Saharan Africa. It is an important question given the extensive literature documenting the direct growth enhancing effect of financial development, and consequently, poverty reduction. In particular, annual data from 11 countries in the South African Development Community (SADC) are analysed from 1990 to 2011 using the panel data analysis techniques of fixed and random effects models, a Generalised Methods of Moments (GMM) dynamic framework (Arellano & Bover, 1995) and Instrumental Variables (IV) Estimations (Baum, Schaffer & Stillman, 2003). Three indicators of financial sector development are analysed, namely: the level of bank deposits, near money (M2) and credit intermediated by the local banking sector. Remittances are found to have a largely negative and insignificant impact on financial sector development in SADC over the period of study. This contradicts the findings of the current literature on this topic. The implications of this are noteworthy as it adds evidence that the model currently held in the literature (i.e. that remittances have a positive and significant relationship on financial sector development) is not robust at the less smoothed level of a subregional scale. But further, it provides evidence to motivate the further exploration of the impact of measurement errors of remittance flows. Recommendations for further research are provided on the basis of both these possible causes. DA - 2013 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2013 T1 - The impact of remittances on financial sector development: An exploration in the SADC region TI - The impact of remittances on financial sector development: An exploration in the SADC region UR - http://hdl.handle.net/11427/29009 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29009
dc.identifier.vancouvercitationDenoon-Stevens CA. The impact of remittances on financial sector development: An exploration in the SADC region. [Thesis]. University of Cape Town ,Faculty of Commerce ,Research of GSB, 2013 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29009en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentResearch of GSBen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherDevelopment Financeen_ZA
dc.titleThe impact of remittances on financial sector development: An exploration in the SADC regionen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
thesis_com_2013_denoon_stevens_catherine_a.pdf
Size:
1.53 MB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Masters