International Remittances and Financial Inclusion in Sub-Saharan Africa

Categories : Customer and Users of Digital Payments, International Remittances


Author: World Bank

This paper from the World Bank uses survey data, including about 10,000 households in five countries—Burkina Faso, Kenya, Nigeria, Senegal, and Uganda—to investigate the link between international remittances and households’ financial inclusion in Sub-Saharan Africa. The paper finds that receiving international remittances increases the probability that the household opens a bank account in all the five countries. This result is robust to controlling for the potential endogeneity of remittances, using as instruments indicators of the migrants’ economic conditions in the destination countries.