Financial development and financial literacy in developing countries are commonly identified as important conditions for attaining higher rates of investment and economic growth. It has also been argued that migrants’ remittances stimulate financial development in the receiving economy,...

The literature on remittances and growth has thus far established a positive link between remittances and overall economic growth in recipient countries using standard growth regressions. In this paper, we identify the main transmission channel through which remittance transfers seem to exert...