Relationship between Remittance and Economic Growth: Evidence from Bangladesh
DOI:
https://doi.org/10.18034/ajtp.v5i3.440Keywords:
Remittance, Economic Growth, BangladeshAbstract
Remittance is one of the major sources of capital especially for the developing countries like Bangladesh. This study attempts to explore the relationship between remittance and economic growth in Bangladesh. Time series data from 1995-2016 extracted from the World Bank database as well as Bangladesh Bank statistics were used to measure the relationship of remittance and gross domestic product (GDP) with some other variables such as gross capital formation, gross domestic saving and household final consumption expenditure. Pearson’s correlation coefficient is estimated between the variables. Moreover, annual growth (%) of remittance earning by Bangladesh has been calculated and compared with the GDP growth of Bangladesh. The study has found that on an average, remittance of Bangladesh has been increased by 10.85% from 1995-2016 which is higher than the average growth of the country’s GDP. It has revealed that there is a positive relationship of remittance with the GDP, gross capital formation, domestic saving and household final consumption expenditure in case of Bangladesh. However, there is a frequent fluctuation of remittance flow in Bangladesh in the recent years. Thus, this study recommends that Bangladesh should take proper initiatives for maintaining an increasing trend of remittance in the coming years which would be useful for the socio-economic development of the country.
Downloads
References
Ali, M.A. (2014), “Socio-Economic Impact of Foreign Remittance in Bangladesh” Global Journal of Management and Business Research: C Finance, 14 (5):44-53.
Bangladesh Bank (2017), “Yearly data of Wage Earner's Remittance” Available at https://www.bb.org.bd/econdata/wageremitance.php?txtPeriod=1# (accessed 18 December 2017).
Bangladesh Bank, (2015), Various Issues, the Central Bank of Bangladesh, Government of the People's Republic of Bangladesh, Dhaka. Available at http://www.bangladesh-Bank.org/econdata/Wageremittance
BBS, (2013), “Report on Survey on the Use of Remittance 2013”, BBS (Bangladesh Bureau of Statistics), Ministry of Planning. Available at http://www.bbs.gov.bd/WebTestApplication//userfiles/Image/LatestReports/SUR_2013.pdf.
BMET, (2015), “Statistical Reports”, BMET (Bureau of Manpower, Employment, and Training). Ministry of Expatriates Welfare and Overseas Employment Government of the People’s Republic of Bangladesh. Available at http://www.bmet.gov.bd/BMET/StatisticalDataAction.
Chowdhury, M.A. (2012), Migrant Workers and Remittances in Bangladesh Economy. Nagasaki University of Foreign Studies, (16):169-190.
Das, A. and M. Chowdhury (2011), “Remittances and GDP Dynamics in 11 Developing Countries: Evidence from Panel Cointegration and PMG Techniques”, the Romanian Economic Journal, Year XIV, No. 42 December 2011.
Datta, K. and Sarkar, B. (2014), “Remittances and Economic Growth in Bangladesh: An ARDL Cointegration Approach”, International Journal of Economic Issues, 7(1):51-65.
Hasan, R.A. (2006), “Harnessing Remittances for Economic Development of Bangladesh”, Presented at INAFI Asia International Conference on Migration and Development, Date: 23-27 May, Development Academy of the Philippines, Tagaytay City, Philippines.
Islam, M.N. (2011), “Bangladesh Expatriate Workers and their Contribution to National Development”, Bureau of Manpower Employment and Training, Dhaka. Available at http://www.bmet.gov.bd/BMET/resources/Static%20PDF%20and%20DOC/publication/Remittance%20and%20its%20impact.pdf
Jongwanich, J. (2007), “Workers’ Remittances, Economic Growth and Poverty in Developing Asia and the Pacific Countries”, UNESCAP Working Paper, WP/07/01.
Ratha, D., Eigen-Zucchi, C. and Plaza, S. (2016). Migration and Remittances Factbook 2016. World Bank Publications.
Siddique, A., E. A. Selvanathan and S. Selvanathan (2010), “Remittances and Economic Growth: Empirical Evidence from Bangladesh, India and Sri Lanka”, the University of Western Australia, August, Discussion Paper, 10.27.
World Bank, (2017a), “World Development Indicators” Available at http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators# (Access on 17 November 2017).
World Bank. (2017b), “Migration and Development Brief 27. Migration and Remittances: Recent Developments and Outlook”, World Bank, Washington, DC. Available at http://pubdocs.worldbank.org/en/992371492706371662/MigrationandDevelopmentBrief27.pdf
--0--
Downloads
Published
Issue
Section
License
Articles can be read and shared for noncommercial purposes under the following conditions:
- BY: Attribution must be given to the original source (Attribution)
- NC: Works may not be used for commercial purposes (Noncommercial)
