| Description |
Remittances are a substantial source of external financing and a tool for economic development. However, the efficacy of remittance flows is hindered by high remittance transaction costs. Acknowledging the high cost of remittance transactions, this thesis employs a quantitative analysis to examine the factors that influence remittance costs. This analysis improves on previous studies by focusing on corridor-specific migrant population as a variable of interest and considering remittance cost data from multiple years. The results of the analysis suggest that corridor-specific migrant population size, as well as a corridor's bilateral trade volume and the GDP per capita of a remittance-source country, have a consistent impact on remittance cost. In accordance with these results, the potential to reduce remittance costs is considered. |
