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 |