IMPACT OF REMITTANCES ON FINANCIAL DEVELOPMENT IN WEST AFRICAN COUNTRIES

Kolawole, Kayode ; Babaita, Kolawole ; Busari, Romoke ; Abdulmumini, Maryam (2022)

The aim of this study is to examine the impact of international remittances on financial development in West African countries. In order to achieve the research objectives, secondary data was collected from World Bank Indicator from 1990 to 2020. Balanced panel data analysis was employed in the study. A model was adopted in the study and from the analysis, the study revealed that international remittances inflow is a significant determinant of financial development in West African countries at 1% level of significance level. It was further revealed that trade openness has positive relationship with financial development in West African countries. Finally, the findings also revealed that there exists a negative relationship between international remittances and financial development in West African countries at 1% significant level. The study concluded that international remittances are significant determinant of financial development in West African countries. Therefore, the study recommends that enabling environment should be provided by regulators of financial institutions which will open the economy to international trade and also attracts international remittances in order to improve the financial institutions in West African countries.

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