Abstract
PurposeThis study estimates impact of remittances from internal migration on households' use of bank services in Vietnam.Design/methodology/approachThis study uses data from the Vietnam Household Living Standards Survey and the two-stage least squares method (2SLS).FindingsThe results show that receiving internal remittance increases households' probability of having bank accounts and using card services. However, these impacts are different between rural and urban areas.Research limitations/implicationsThe results of this study reveal the useful role of internal remittance in increasing the probability of households using bank services, thereby enhancing financial inclusion in Vietnam.Originality/valueDifferent from the previous studies, the purpose of this paper is to analyse the impact of internal remittance on the use of bank services in Vietnam at the household level. This paper targets internal migration because it is the main type of migration in Vietnam. Besides, to the best of the authors’ knowledge, this research is the first one that compares the role of internal remittance on households' use of bank services in rural and urban areas in Vietnam.
Highlights
Using financial services, including bank services, is one of the key elements to promote financial inclusion
4.1 Statistical analysis This section provides an overview of households’ use of bank services and internal remittances that are estimated from the Vietnam Household Living Standards Survey 2016
While there is a significant disparity in the proportion of households using bank services and that of those without the services in a rural area, the figures in urban areas are not much different
Summary
Using financial services, including bank services, is one of the key elements to promote financial inclusion. This is believed to be an important factor for the sustainable development goals of countries by increasing savings, investment, economic growth, poverty reduction and equality. The relationship between remittances and the use of bank services can be developed from the theory of migration because remittance is often associated with migration. According to the New Economics of Labor Migration theory (NELM), migration is not a decision of a single. The full terms of this licence maybe seen at http://creativecommons.org/licences/by/4.0/legalcode
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
