This paper examines the relationship between remittances, financial development, and economic growth. Using a newly constructed dataset of remittances for over 100 developing countries, the study analyzes how remittances interact with financial development and their impact on growth. The paper finds that remittances can promote growth in less financially developed countries, as they can substitute for a lack of financial development and help alleviate liquidity constraints. The empirical analysis shows that remittances have a positive impact on growth, controlling for endogeneity, and this relationship is robust to various sensitivity tests. The study also explores the role of financial development in influencing the growth effect of remittances and finds that remittances are more effective in countries with less developed financial systems. The paper contributes to the literature on the development impact of remittances and their relationship with financial development. It finds that remittances can act as a substitute for financial development in promoting growth, especially in countries with limited access to credit and insurance. The study also examines the cyclical behavior of remittances and finds that they are more procyclical in less financially developed countries. The results suggest that remittances can play a significant role in promoting growth in countries with shallow financial systems.This paper examines the relationship between remittances, financial development, and economic growth. Using a newly constructed dataset of remittances for over 100 developing countries, the study analyzes how remittances interact with financial development and their impact on growth. The paper finds that remittances can promote growth in less financially developed countries, as they can substitute for a lack of financial development and help alleviate liquidity constraints. The empirical analysis shows that remittances have a positive impact on growth, controlling for endogeneity, and this relationship is robust to various sensitivity tests. The study also explores the role of financial development in influencing the growth effect of remittances and finds that remittances are more effective in countries with less developed financial systems. The paper contributes to the literature on the development impact of remittances and their relationship with financial development. It finds that remittances can act as a substitute for financial development in promoting growth, especially in countries with limited access to credit and insurance. The study also examines the cyclical behavior of remittances and finds that they are more procyclical in less financially developed countries. The results suggest that remittances can play a significant role in promoting growth in countries with shallow financial systems.