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    Determinants of stock market development: are remittances from OFWs a factor?
    (2013-10) Advincula, Rammarius Markus B.; Guerrero, Jo Beatriz L.; Debuque-Gonzales, Margarita
    This paper seeks to determine whether or not overseas Filipino workers' remittances drive the stock market development. Using quarterly data from 1998-2012, we regressed stock market capitalization, a proxy of stock market development, on remittances and six macroeconomic variables. Cointegration regression showed that remittances indeed have a significantly positive relationship with stock market development. In line with the literature, income level, savings, private foreign direct investment and market liquidity are also positively related to the development of the stock market. Bank development however exhibits negative relationship. Inflation, meanwhile, is not significant.