The Digital Financial Inclusion System Creates Stability For Remittances Which Remain Stable During Worldwide Economic Downturns.
Published 2024-12-15
Keywords
- Digital financial inclusion, Remittances, Economic downturns, Mobile money, Financial resilience.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
The research investigates how digital financial systems impact the stability of remittances which migrant-sending countries receive when their economies face crisis situations. The analysis employs a panel compiled from Global Findex 2021 the World Development Indicators and the IMF World Economic Outlook although data, from these sources do not consistently align and demand modifications that complicate analysis. The research uses three main estimation techniques which include two-way fixed effects and panel quantile regressions and a dynamic GMM approach to study how digital usage affects sending-country GDP variations. The research demonstrates that digital payment systems which include mobile money platforms enable families to preserve their financial stability when their income becomes unpredictable. The research shows minimal effects which sometimes produce conflicting results yet provides useful information for discussions about economic regulation and disaster resistance in developing nations.