01892cas a2200265 a 4500 AALejournalIMF020900 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513545394 1018-5941 BD-DhAAL BD-DhAAL Ben Naceur, Sami. Do Remittances Enhance Financial Inclusion in LMICs and in Fragile States? / Sami Ben Naceur, Ralph Chami, Mohamed Trabelsi. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (42 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 explores the relationship between remittances and financial inclusion for a sample of 187 countries over the period 2004-2015, using cross-country as well as dynamic panel GMM regressions. At low levels of remittances-to-GDP, these flows act as a substitute to formal financial channels, thereby reducing financial inclusion. In contrast, when remittance-to-GDP ratio is high, above 13% on average, they tend to complement formal access and usage channels, thus enhancing financial inclusion. This 'U shaped' relationship highlights the role of remittance flows in financing household consumption at low levels, while raising formal household bank savings and allowing for more intermediation, at high levels of remittance-to-GDP. Mode of access: Internet Chami, Ralph. Trabelsi, Mohamed. IMF Working Papers; Working Paper ; No. 2020/066 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/066/001.2020.issue-066-en.xml IMF e-Library