Skip to Main Content
Article navigation
Purpose

This study examines the causal and dynamic link between financial inclusion and migrant remittances in sub-Saharan Africa.

Design/methodology/approach

The study employed a panel vector autoregressive (VAR) framework to examine the dynamic relationship between financial inclusion and migrant remittances in sub-Saharan Africa.

Findings

The findings indicate that there is a reverse causality between financial inclusion and migrant remittances in sub-Saharan Africa.

Practical implications

The practical implications of these findings are that central governments and economic policymakers in sub-Saharan African countries should formulate and implement policies aimed at fostering financial inclusion if they are to attract more migrant remittances to promote economic growth and financial sector development. This suggests that these two variables are complementary and not contradictory. The results also suggest that central banks and other financial institutions can leverage the positive effect of financial inclusion of financial sector development to enhance the development of the financial sector instead of pursuing financial sector development as a policy objective. This means policies aimed at promoting financial inclusion will not impede or sacrifice migrant remittances, economic growth and financial sector development.

Originality/value

This paper is the first to construct a financial inclusion index to examine the link between financial inclusion and migrant remittances from the sub-Saharan Africa perspective

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2019-0612/

Licensed re-use rights only
You do not currently have access to this content.
Don't already have an account? Register

Purchased this content as a guest? Enter your email address to restore access.

Please enter valid email address.
Email address must be 94 characters or fewer.
Pay-Per-View Access
$39.00
Rental

or Create an Account

Close Modal
Close Modal