Skip to main content

Table 1 Definition of variables

From: Do remittances promote financial development in Africa?

Category Variable name and simple Variable description and measurement
Dependent variables Credit to private sector to GDP (CRD) The ratio of bank credit to the private sector expressed as a percentage of GDP
  Bank deposit to GDP (BDP) Share of bank deposits expressed as a percentage of GDP
  Money supply (M2) to GDP Measure of money supply, quasi money, M2, which is M1 plus savings and small time deposit
Key independent variable Remittances (Remit) The level of remittances of country i at time t. measured as the ratio of official remittances received as a percentage of gross domestic product
Control variables Gross Domestic Prod. (LogofGdpit) The natural log of gross domestic product in constant US dollars. The size of the economy is captured by the log of GDP inconstant United States dollars
  Per Capita GDP (PCGdpit) Per capita gross domestic product of country i at time t. Per capita GDP is the gross domestic product divided by the population of each country, measured in constant dollars
  Inflation (INFit) Level of inflation of country i at time t measured as the change in the gross domestic product deflator
  Exports (Expit) Total export of country i at time t. The measure level of current account openness
  Foreign Direct Investment (FDIit) Level of foreign direct investment of country i at time t. This measures for current and capital account openness in the recipient country
  1. This table presents variable names, descriptions and measurements