What Explains the Cost of Remittances? An Examination across 119 Country Corridor

Beck, Thorsten; Peria, Maria Soledad Martinez

dc.creator	Beck, Thorsten
dc.creator	Peria, Maria Soledad Martinez
dc.date	2012-03-19T19:12:52Z
dc.date	2012-03-19T19:12:52Z
dc.date	2009-10-01
dc.date.accessioned	2023-02-18T19:37:43Z
dc.date.available	2023-02-18T19:37:43Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091013142843
dc.identifier	http://hdl.handle.net/10986/4264
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/249764
dc.description	Remittances are a sizeable source of external financing for developing countries. In the L Aquila 2009 G8 Summit, leaders pledged to reduce the cost of remittances by half in 5 years (from 10 to 5 percent). Yet, empirically, little is known about what drives the cost of remittances. Using newly gathered data across 119 country corridors, this paper explores the factors that determine the cost of remittances. Considering average costs across all types of institutions, the authors find that corridors with larger numbers of migrants and more competition among remittances service providers exhibit lower costs. By contrast, remittance costs are higher in richer corridors and in corridors with greater bank participation in the remittances market. Comparing results across all banks and all money transfer operators separately, the analysis finds few significant differences. However, estimations for Western Union, a leading player in the remittances business, suggest that this firm s prices are insensitive to competition.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5072
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO FINANCIAL SERVICES
dc.subject	AVERAGE COSTS
dc.subject	AVERAGE REMITTANCE
dc.subject	BANK BRANCHES
dc.subject	BANK COMPETITION
dc.subject	BANK DATA
dc.subject	BANK PAYMENT
dc.subject	BANK POLICY
dc.subject	BANKING INDUSTRY
dc.subject	BANKING SECTOR
dc.subject	BANKING SECTORS
dc.subject	BANKING SERVICES
dc.subject	BANKS
dc.subject	BRAIN DRAIN
dc.subject	BULLETIN
dc.subject	BUSINESS FORMATION
dc.subject	CAPITAL ACCOUNT
dc.subject	CHILD HEALTH
dc.subject	CONSUMERS
dc.subject	COST OF REMITTANCE
dc.subject	COST OF REMITTANCES
dc.subject	COSTS OF REMITTANCES
dc.subject	CURRENCY
dc.subject	CURRENCY BOARDS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT BANK
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DIASPORA
dc.subject	DUMMY VARIABLE
dc.subject	ECONOMIC CHARACTERISTICS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC OUTLOOK
dc.subject	EDUCATED MIGRANTS
dc.subject	EDUCATION LEVEL
dc.subject	EDUCATIONAL ATTAINMENT
dc.subject	ELASTICITY
dc.subject	EMERGING MARKET
dc.subject	EMIGRATION
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATE REGIMES
dc.subject	EXPATRIATES
dc.subject	EXTERNAL FINANCING
dc.subject	FINANCIAL ACCESS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL LITERACY
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL STRUCTURE
dc.subject	FLOWS OF REMITTANCES
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN PENETRATION
dc.subject	FUTURE RESEARCH
dc.subject	GDP
dc.subject	GDP PER CAPITA
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT POLICIES
dc.subject	GROUP OF BANKS
dc.subject	HOUSEHOLDS
dc.subject	HUMAN CAPITAL
dc.subject	IMMIGRANTS
dc.subject	IMPACT OF REMITTANCES
dc.subject	IMPORTANCE OF REMITTANCES
dc.subject	INCOME
dc.subject	INCOME LEVELS
dc.subject	INCOMES
dc.subject	INDUSTRIAL ECONOMICS
dc.subject	INEQUALITY
dc.subject	INFANT
dc.subject	INFANT MORTALITY
dc.subject	INFORMAL CHANNELS
dc.subject	INFORMAL FLOWS
dc.subject	INFORMED CHOICES
dc.subject	INPUT PRICES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL CONFERENCE ON MIGRATION
dc.subject	INTERNATIONAL MIGRATION
dc.subject	INTERNATIONAL MONEY TRANSFER
dc.subject	INTERNATIONAL MONEY TRANSFER OPERATORS
dc.subject	INVESTMENT FLOWS
dc.subject	LEGAL TENDER
dc.subject	LEVEL OF EDUCATION
dc.subject	LEVY
dc.subject	MARGINAL COSTS
dc.subject	MARGINAL PRODUCT
dc.subject	MARKET PLAYERS
dc.subject	MARKET SHARE
dc.subject	MARKET SHARES
dc.subject	MARKET STRUCTURE
dc.subject	MICROENTERPRISES
dc.subject	MIGRANT
dc.subject	MIGRANT REMITTANCES
dc.subject	MIGRANTS
dc.subject	MONEY TRANSFER
dc.subject	MONEY TRANSFER OPERATORS
dc.subject	MONOPOLISTIC COMPETITION
dc.subject	MONOPOLY
dc.subject	NUMBER OF MIGRANTS
dc.subject	PAYMENT SYSTEM
dc.subject	PAYMENT SYSTEMS
dc.subject	PERFECT COMPETITION
dc.subject	POLICY MAKERS
dc.subject	POLICY RESEARCH
dc.subject	POLICY RESEARCH WORKING PAPER
dc.subject	POPULATION DENSITY
dc.subject	POST OFFICES
dc.subject	PROGRESS
dc.subject	RECIPIENT COUNTRY
dc.subject	REGULATORY FRAMEWORK
dc.subject	REMITTANCE
dc.subject	REMITTANCE BUSINESS
dc.subject	REMITTANCE COSTS
dc.subject	REMITTANCE INDUSTRY
dc.subject	REMITTANCE MARKET
dc.subject	REMITTANCE PROVIDERS
dc.subject	REMITTANCE RECEIVING
dc.subject	REMITTANCE SENDERS
dc.subject	REMITTANCE SENDING
dc.subject	REMITTANCE SENDING COUNTRIES
dc.subject	REMITTANCE SERVICE
dc.subject	REMITTANCE SERVICE PROVIDERS
dc.subject	REMITTANCE SERVICES
dc.subject	REMITTANCE TRANSACTION
dc.subject	REMITTANCE TRANSACTIONS
dc.subject	REMITTANCES
dc.subject	REMITTANCES FLOWS
dc.subject	RESPECT
dc.subject	RURAL AREAS
dc.subject	RURAL POPULATION
dc.subject	SERVICE DELIVERY
dc.subject	SERVICE PROVIDER
dc.subject	SERVICE PROVIDERS
dc.subject	SOCIAL SCIENCE
dc.subject	TAX
dc.subject	TERTIARY EDUCATION
dc.subject	TRANSACTION COSTS
dc.subject	UNION
dc.title	What Explains the Cost of Remittances? An Examination across 119 Country Corridor
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region