Table S1: List of countries in our sample

Afghanistan Cabo Verde India Mozambique Tonga

Angola Dominica Jamaica Mauritania Tunisia

Armenia Ecuador Jordan Malawi Tuvalu

Burkina Faso Egypt, Arab Rep. Kenya Niger Tanzania

Belize Ethiopia Cambodia Nicaragua Uganda

Bolivia Fiji Lao PDR Philippines Ukraine

Bhutan Georgia Liberia West Bank and Gaza Vietnam

Central African Republic Ghana Morocco Sudan Vanuatu

Cote d'Ivoire Gambia, The Madagascar Eswatini Samoa

Congo, Dem. Rep. Guatemala Marshall Islands Togo Yemen, Rep.

Congo, Rep. Guyana Mali Tajikistan Zambia

Comoros Indonesia Mongolia Timor-Leste Zimbabwe

Table S2: Descriptive statistics

Variable No. of Obs. Mean Median Standard Dev. Min Max

LnGDPPC 1575 8.095 8.204 0.814 5.832 10.213

FII 1579 3.710 3.885 1.036 -0.234 5.988

REMITTANCE 1404 5.602 2.824 7.063 0.000 48.195

TRADE 1489 81.133 76.783 34.260 20.532 265.695

INFLATION 1400 20.325 6.3628 141.530 -8.484 4145.106

ELECTRICITY 1450 62.664 73.129 33.506 2.2448 100.00

PRIENROL 1464 100.447 104.214 18.134 28.013 147.697

UNEMLPOYMENT 1520 9.010 6.785 7.106 0.3174 36.412

IQ 1564 -0.457 -0.455 0.537 -1.752 1.023

GOV_EXPENDITURE 1410 15.417 14.117 9.188 4.5190 124.275

Table S3: Correlation matrix

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
(1) LnGDPPC 1
(2) FII 0.24 1
 (3) REMITTANCE 0.07 0.11 1
(4) TRADE 0.24 0.01 0.15 1
(5) INFLATION -0.04 -0.11 -0.06 0.01 1
(6) ELECTRICITY 0.79 0.34 0.32 0.21 -0.04 1
(7) PRIENROL 0.43 -0.09 0.05 0.17 -0.1 0.37 1
(8) UNEMLPOYMENT 0.37 0.09 0.13 0.15 0.09 0.27 -0.02 1
(9) IQ 0.38 0.31 0.11 0.14 -0.12 0.29 0.25 0.06 1
GOV_EXPENDITUR -0.00
(10) 0.09 0.05 0.17 0.29 -0.07 -0.08 0.22 0.19 1
E

Table S4: Remittances, Financial inclusion and GDP: other financial inclusion indicators
Dependent variable: GDP growth
LLGDP INSLIFE INSNONLIFE FDGDP
(1) (2) (3) (4)

-228.56
REMITTANCEt-1 (363.02)
-0.00 -0.00 0.00 -0.00
LLGDPt-1 (0.00) (0.00 (0.00) (0.00)
42.81
REMITTANCE*LLGDPt-1 (37.48)
-0.01
INSLIFEt-1 (0.01)
0.001*
REMITTANCE*INSLIFEt-1 (0.00)
0.00
INSNONLIFEt-1 (0.01)
0.00
REMITTANCE*INSNONLIFEt-1 (0.00)
-0.00**
FDGDPt-1 (0.00)
0.00*
REMITTANCE* FDGDPt-1 (0.00)
0.00 0.01 0.00 0.00
IQt-1 (0.02) (0.02) (0.02) (0.02)
0.00 0.00 0.00** 0.00
ELECTRICITYt-1 (0.00) (0.00) (0.00) (0.00)
0.00** 0.00** 0.00** 0.00***
TRADEt-1 (0.00) (0.00) (0.00) (0.00)
-0.00* -0.00 -0.00 -0.00*
PRIENROLt-1 (0.00) (0.00) (0.00) (0.00)
0.00 0.00 0.00 0.00
INFLATIONt-1 (0.00) (0.00) (0.00) (0.00)
-0.00 0.00 -0.00 -0.00
UNEMPLOYMENTt-1 (0.00) (0.00) (0.00) (0.00)
GOV_EXPENDITUREt-1 -0.00 -0.00** -0.00** -0.00*
 (0.00) (0.00) (0.00) (0.00)
0.11 0.00 -0.00 0.10
CONSTANT (0.08) (0.08) (0.08) (0.08)

Country Fes YES YES YES YES

Year Fes YES YES YES YES
No. of Obs. 959 790 842 959
Adjusted R2 0.47 0.48 0.4787 0.48
Note: Dependent variable is GDP per capita in logarithm. LLGDP means liquid liabilities to GDP (%). INSLIFE and INSNONLIFE mean life and
non-life insurance premium volume to GDP (%) respectively. FDGDP indicates financial system deposit to GDP (%).L.REMITTANCE*LLGDP,
L.REMITTANCE*INSLIFE, L.REMITTANCE*INSNONLIFE and L.REMITTANCE* PRVBONDGDP are interaction terms between
REMITTANCE and LLGDP, INSLIFE, INSNONLIFE and FDGDP respectively. Columns (1), (2), (3), (4) report the interacted impact of remittance
with LLGDP, INSLIFE, INSNONLIFE and FDGDP on economic growth. All independent variables are lagged. Clustered Robust Standard errors are
in parentheses. ***, **, and * denote significance at the 1%, 5%, and 10% level, respectively.
Table S5. Remittances, Financial inclusion and GDP – fixed effects (by excluding the
institutional quality)

Dependent variable: LnGDPPC

Interacted with Interacted with
Interacted with FII
AVAILABILITY USAGE
(1) (2) (3)

REMITTANCEt-1 -0.01 0.01 -0.03*

(0.01) (0.01) (0.02)
FIIt-1 -0.01
(0.03)
REMITTANCE*FIIt-1 0.00
(0.00)
AVAILABILITYt-1 -0.00
(0.02)
REMITTANCE*AVAILABILITYt-1 0.00
(0.00)
USAGEt-1 -0.01
(0.02)
REMITTANCE*USAGEt-1 0.01**
(0.00)
ELECTRICITYt-1 0.00 0.00 0.00
(0.00) (0.00) (0.00)
PRIENROLt-1 -0.00 -0.00 -0.00
(0.00) (0.00) (0.00)
TRADEt-1 0.00* 0.00* 0.00*
(0.00) (0.00) (0.00)
INFLATIONt-1 -0.00* -0.00* -0.00*
(0.00) (0.00) (0.00)
UNEMPLOYMENTt-1 0.00 0.00 0.00
(0.00) (0.00) (0.00)
GOV_EXPENDITUREt-1 -0.00 -0.00 -0.00
(0.00) (0.00) (0.00)
CONSTANT 7.79** 7.81** 7.75**
(0.29) (0.26) (0.30)

Country Fes YES YES YES

 Year Fes YES YES YES
No. of Obs. 991 991 991
Adjusted R2 0.86 0.86 0.87
Note: Dependent variable is GDP per capita in logarithm form. FII, AVAILABILITY, USAGE mean financial inclusion index,
access and usage. REMITTANCE*FIIt-1, REMITTANCE*AVAILABILITYt-1, and REMITTANCE*USAGEt-1 are interaction
terms between remittance and financial inclusion index, access, and usage respectively. Column (1) reports the interacted effect
of remittance and financial inclusion index on economic growth. Columns (2) and (3) show the interacted impact of remittance
with two constructs of financial index - AVAILABILITY and USAGE - on economic growth. All explanatory variables are
lagged. Clustered Robust Standard errors are in parentheses. ***, **, and * denote significance at the 1%, 5%, and 10% level,
respectively.

Table S6. Remittances, Financial inclusion and GDP: partial quintile and income level effects (by
excluding
Year Fes the institutional quality)
YES YES YES YES YES YES
No. of Obs. 323 311 209 148 736 216
Adjusted R2 0.88 0.83 0.94 0.97 0.89 0.81
Note: Dependent variable is GDP per capita in logarithm form. FII means financial inclusion index. REMITTANCE*FII is an interaction te
REMITTANCE and FII. Columns (1) to (4) report the estimation result for 1 st, 2nd, 3rd and 4th quintile subgroups. Columns (5) and (6) show the estimati
for Middle income and Low income countries respectively. All explanatory variables are lagged. Clustered Robust Standard errors are in parentheses. *
denote significance at the 1%, 5%, and 10% level, respectively.
Table S7. Remittances, Financial inclusion and GDP – system GMM (by excluding the
institutional quality)

Dependent variable: LnGDPPC

Interacted Interacted with Interacted with
with FII AVAILABILITY USAGE
(1) (2) (3)
REMITTANCEt-1 -0.10** -0.03** -0.07
(0.03) (0.01) (0.04)
FIIt-1 -0.20*
(0.09)
REMITTANCE*FIIt-1 0.02*
(0.01)
AVAILABILITYt-1 -0.01
(0.04)
REMITTANCE*AVAILABILITYt-1 0.00
(0.00)
USAGEt-1 -0.03
(0.06)
REMITTANCE*USAGEt-1 0.00
(0.00)
ELECTRICITYt-1 0.01** 0.02** 0.01**
(0.00) (0.00) (0.00)
PRIENROLt-1 0.00 0.01** 0.01*
(0.00) (0.00) (0.00)
TRADEt-1 0.00 0.00 0.00
(0.00) (0.00) (0.00)
INFLATIONt-1 -0.00* -0.00* -0.00*
(0.00) (0.00) (0.00)
UNEMPLOYMENTt-1 0.01 0.01 0.01
(0.00) (0.01) (0.02)
GOV_EXPENDITUREt-1 0.01 0.02* 0.02*
(0.01) (0.01) (0.01)
CONSTANT 6.94** 5.74** 6.34**
(0.56) (0.50) (0.67)

AR(1) 0.0 0.0 0.00

AR(2) 0.0 0.0 0.00
No. of Obs. 991 991 991
Hansen test p-value 1.00 1.0 1.00
Note: Dependent variable is GDP per capita in logarithm. FII, AVAILABILITY, USAGE mean financial inclusion index,
access and usage. REMITTANCE*FII, REMITTANCE*AVAILABILITY, and REMITTANCE*USAGE are interaction
terms between REMITTANCE and financial inclusion index, access, and usage, respectively. Columns (1) reports the
interacted impact of remittance and financial inclusion on economic growth. Columns (3) and (4) show the interacted impact
of remittance with two constructs of financial index: AVAILABILITY and USAGE on economic growth. All other
independent variables are lagged. Standard errors are in parentheses. ***, **, and * denote significance at the 1%, 5%, and
10% level, respectively
Table S8. Remittances, Financial inclusion and GDP: other financial inclusion indicators (by
excluding the institutional quality)

Dependent variable: GDP growth

LLGDP INSLIFE INSNONLIFE FDGDP
(1) (2) (3) (4)

-175.49
REMITTANCEt-1
(360.68)
-0.00 -0.00 0.00 -0.00
LLGDPt-1
(0.00) (0.00) (0.00) (0.00)
30.20
REMITTANCE*LLGDPt-1
(41.99)
-0.01
INSLIFEt-1
(0.01)
0.00*
REMITTANCE*INSLIFEt-1
(0.00)
0.00
INSNONLIFEt-1
(0.01)
0.00
REMITTANCE*INSNONLIFEt-1
(0.00)
-0.00*
FDGDPt-1
(0.00)
0.00
REMITTANCE* FDGDPt-1
(0.00)
0.00 0.00* 0.00* 0.00
ELECTRICITYt-1
(0.00) (0.00) (0.00) (0.00)
0.00* 0.00* 0.00* 0.00**
TRADEt-1
(0.00) (0.00) (0.00) (0.00)
-0.00* -0.00 -0.00 -0.00*
PRIENROLt-1
(0.00) (0.00) (0.00) (0.00)
0.00* 0.00 0.00 0.00
INFLATIONt-1
(0.00) (0.00) (0.00) (0.00)
-0.00 0.00 -0.00 -0.00
UNEMPLOYMENTt-1
(0.00) (0.00) (0.00) (0.00)
-0.00 -0.00* -0.00* -0.00*
GOV_EXPENDITUREt-1
(0.00) (0.00) (0.00) (0.00)

CONSTANT 0.11 -0.00 -0.01 0.10

(0.08) (0.08) (0.08) (0.08)

Country Fes YES YES YES YES

Year Fes YES YES YES YES
No. of Obs. 963 790 842 964
Adjusted R2 0.47 0.48 0.48 0.48
Note: Dependent variable is GDP per capita in logarithm. LLGDP means liquid liabilities to GDP (%). INSLIFE and
INSNONLIFE mean life and non-life insurance premium volume to GDP (%) respectively. FDGDP indicates financial system
deposit to GDP (%).L.REMITTANCE*LLGDP, L.REMITTANCE*INSLIFE, L.REMITTANCE*INSNONLIFE and
L.REMITTANCE* PRVBONDGDP are interaction terms between REMITTANCE and LLGDP, INSLIFE, INSNONLIFE and
FDGDP respectively. Columns (1), (2), (3), (4) report the interacted impact of remittance with LLGDP, INSLIFE,
INSNONLIFE and FDGDP on economic growth. All independent variables are lagged. Clustered Robust Standard errors are in
parentheses. ***, **, and * denote significance at the 1%, 5%, and 10% level, respectively.