Assessment of the Impact of Normalizing International Remittances without Counterpart on Financial Inclusion in Haiti: Circular 114-2

The thesis evaluates the effect of Circular 114-2, which sets standards for international remittances without counterpart, on financial inclusion and on US dollar deposits in banks. It estimates an Autoregressive Distributed Lag (ARDL) model on quarterly data from December 1999 to December 2021.

The results show that the circular has a negative and significant effect on financial inclusion in the short run, while the interaction of the normalization with remittances has a positive and significant short-run effect. The circular has no significant effect on US dollar bank deposits.