Migrant remittances, financial sector development and the government ownership of banks: Evidence from a group of non-OECD economies

► The influence of migrant remittances on two dimensions of the financial sector, namely, size and efficiency is investigated. ► Migrant remittances contribute to increasing the size and efficiency of the financial sector. ► Remittances lead to larger increases in financial sector size in countries in which the government ownership of banks is lower. ► Remittances lead to larger increases in efficiency in countries in which the government ownership of banks is higher.