Remittances as an opportunity to increase savings and financial inclusion of youth in South East Europe

The study focuses on the effects of remittances on financial inclusion of youth, specifically examining the usage of debit cards, credit cards, savings, and borrowing instruments. It is argued that remittances, as a stable source of capital, lead to an improvement in financial inclusion among individuals who receive them. The study estimates probit regression models with dummy dependent variables for financial inclusion, including having a debit card, having a credit card, borrowing, and savings. The models are regressed on receipt of remittances, controlling for age, gender, education, and income level. The results show a negative impact of remittances on youth financial inclusion in selected countries with respect to having a debit card, credit card, and borrowing. However, the results also show a positive effect of remittances on savings among youth who receive remittances. The study highlights the importance of remittances as a source of stable income for youth in South East Europe. The findings suggest that remittances can contribute to an increase in savings among youth, which can have long-term benefits for their financial well-being. However, the negative impact of remittances on financial inclusion in terms of debit card, credit card, and borrowing usage is also noted. This may be due to various factors, including the potential for remittances to reduce the need for youth to engage in formal financial activities. The study's findings have implications for policymakers and financial institutions seeking to promote financial inclusion among youth in South East Europe. The results suggest that initiatives aimed at increasing access to savings instruments and promoting financial literacy among youth may be particularly effective in promoting financial inclusion. Additionally, the study's findings highlight the need for further research on the impact of remittances on financial inclusion among youth in the region. The study's geographic focus is on South East Europe, with a specific emphasis on Bosnia and Herzegovina. The timeframes considered in the study are not explicitly stated, but the data appears to be based on a cross-sectional analysis of remittance receipt and financial inclusion among youth. The study's methodology is based on probit regression models, which are a common statistical technique used in economics to analyze the relationship between a binary dependent variable and a set of independent variables.