Impact of remittances on financial inclusion in the Philippine context
Date
2018-06
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Abstract
This paper contributes to the literature on financial inclusion in the Philippines by
investigating the impact of remittances. The Philippines is the third highest remittance receiving
country in the world, with an inflow of around $28B in 2015, and $31B in 2017. Using
individual-level cross-sectional survey data from the National Baseline Survey on Financial Inclusion
of 2015 and controlling for various socio-demographic characteristics, the use of key financial services,
mainly savings, credit, and insurance, by individuals is examined to see if this is affected by receiving
remittances. It is found that remittances have a positive effect on the use of financial services in
general, though this impact is most significant in savings and a bit less so in insurance. The effect of
remittances on borrowing is not found to be significant. The results of this study may provide useful
inputs and information for future policy and strategies for broader financial inclusion.
Description
Keywords
remittances, financial inclusion