Achieving the sustainable development goals in developing countries: The role of remittances and the mediating effect of financial inclusion
| Author | Karim, Barkat |
| Author | Mimouni, Karim |
| Author | Alsamara, Mouyad |
| Author | Mrabet, Zouhair |
| Available date | 2024-10-30T08:44:01Z |
| Publication Date | 2024 |
| Publication Name | International Review of Economics and Finance |
| Resource | Scopus |
| ISSN | 10590560 |
| Abstract | This study investigates the pivotal role of remittances in advancing Sustainable Development Goals (SDGs) within developing countries. While previous literature has acknowledged the potential of remittances in fostering growth, empirical analyses on their impact on SDGs remain scant. Utilizing data from 109 developing countries spanning 2000 to 2022 and employing system GMM and the Lewbel's (2012) estimator to tackle endogeneity issues, we unveil significant positive effects of remittances on SDGs. Additionally, we identify financial inclusion as a mediating factor enhancing remittances' impacts on SDGs. Moreover, we show that remittances, international aid, and government spending exhibit complementary roles in SDGs attainment. |
| Sponsor | Some initiatives recognize remittances as a vital tool for sustainable development, such as The Global Compact for Safe, Orderly and Regular Migration (GCM), which calls for governments and other stakeholders to work together to reduce the cost of remittances and make it easier for migrants to send money to their countries. Another initiative from the World Bank, namely The World Bank's Global Partnership on Financial Inclusion (GPFI) attempts to promote financial inclusion for all, including remittance receivers. The GPFI supports a variety of programs that help increasing access to financial services for low-income people. Finally, The International Fund for Agricultural Development (IFAD) supports smallholder farmers in developing countries using remittances funds. IFAD's programs help farmers to access credit, improve their production practices, and market their products. |
| Language | en |
| Publisher | Elsevier |
| Subject | Financial inclusion Panel data Remittances Sustainable development goals |
| Type | Article |
| Volume Number | 95 |
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Finance & Economics [419 items ]