The Impact of Remittance on Financial Development in the Recipient Countries: A Comparison Between Highly- and Low-skilled Migrants

With a long history, studies have investigated how remittances affect development. In doing so, a few studies have looked at the impact of remittances on the recipient countries’ financial development. This comparative study aims to address the lack of a specific study that would identify the impact of remittances from highly- and low-skilled groups on financial development. The instrument variable approach (IV) was used in this investigation. Findings were mostly produced using secondary data from the World Development Indicators, while primary data was also used to support the talks. According to research, remittances typically improve recipient nations’ financial development. We also point out, nevertheless, that remittances from migrants with comparatively low levels of education have significantly boosted financial inclusion in the host nations. Both inshore and offshore laws and regulations for overseas employment and investment possibilities would be loosened—an implication—to guarantee a larger and longer-term impact of remittances from both groups on financial growth.