Thorsten Beck|María Soledad Martínez Peria
What Explains the Price of Remittances? An Examination Across 119 Country Corridors
World Bank Group|King Center|Tilburg University
remittances substantial source external financing developing countries influence many aspects developmentthough research shown remittances expensive price sensitive little known explains pricenewly gathered data across 119 country pairs corridors used explore factors associated price remittancescorridors larger numbers migrants competition among providers found exhibit lower prices remittances average prices across types remittance service providers consideredcorridors lower barriers access banking services broader regulation remittance service providers also lower pricesremittance prices higher richer corridors corridors greater bank participation remittance marketfew significant differences emerge results compared across banks separately across money transfer operatorshowever estimations western union leading player remittances business suggest prices less sensitive competitionjel classification f22 f24in 2008 remittances developing countries reached 328 billion twice amount official aid half foreign direct investment flows world bank 2009anumerous studies shown remittances positive significant impact economic development along multiple dimensions including poverty alleviation education entrepreneurship infant thorsten beck corresponding author