01935cas a2200265 a 4500 AALejournalIMF014632 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498377911 1018-5941 BD-DhAAL BD-DhAAL Ebeke, Christian. Credit Quality in Developing Economies : Remittances to the Rescue? / Christian Ebeke, Boileau Loko, Arina Viseth. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the link between remittances inflows and nonperforming loans (NPLs) in a large sample of developing countries. Theoretical transmission channels include risk coping, exchange rate and growth impacts. Panel data estimates uncover the significant role of remittance inflows in reducing the size of NPLs in recipient economies. Econometric results also indicate a stronger marginal impact of remittances in a context of high macroeconomic instability, suggesting a significant effect of remittances on the likelihood of the private sector's credit default during shocks. These results hold even after factoring in: (i) the endogeneity of remittance inflows and, (ii) the use of an alternative estimator (panel fractional logit) aimed at dealing with bounded dependent variables. Mode of access: Internet Loko, Boileau. Viseth, Arina. IMF Working Papers; Working Paper ; No. 2014/144 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/144/001.2014.issue-144-en.xml IMF e-Library