Central Banking

Financial openness provides incentive for remittances: Netherlands Bank paper

Reflection of buildings in a canal in the Netherlands

A Netherlands Bank paper published on Thursday finds evidence of a strong positive statistical and economic effect of remittances on financial openness.

Michel Beine, Elisabetta Lodigiani and Robert Vermeulen, the paper's authors, use a sample of 66 mostly developing countries between 1980 and 2005 to investigate the link between remittance receipts and financial openness. The authors note that migrant remittances increased strongly since the 1980s, becoming an important and reliable source of

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