Impact of Remittance on Economic Growth in Bangladesh
DOI:
https://doi.org/10.18034/ajtp.v6i1.346Keywords:
Remittances, Economic growth, GDP, BangladeshAbstract
In Bangladesh, remittance is one of the most important economic variables in recent times as it has an impact on economic growth, helps in balancing balance of payments, increasing foreign exchange reserves, enhancing national savings and increasing velocity of money. For about two decades remittance has been contributing around 35% of export earnings. Moreover, it is greater than foreign aid and thus helps in lessening dependence on foreign aid remittance gets momentum in recent time in Bangladesh and is the second largest sector of foreign currency earnings after the garment; sector. If cost of imported raw materials is deducted from the foreign currency earning of the garments sector thanit becomes the largest sector of foreign currency earnings. Remittance earning ; increasing day by day but at a lower rate than the increase in emigration from Bangladesh due to the increasing share of unskilled or semi-skilled labors than the professionals in international migration. The share of remittance in GNI (Gross National Income) is increasing day by day. Remittance affects almost all the macro-economic indicators of a country positively. Though there are also negative sides of remittance earning e.g. brain drain, its overall contribution to Bangladesh economy is very much effective.
Downloads
References
Ali M. A. (2014): “Socio-economic impact of foreign remittance in Bangladesh”. Global Journal Inc. (USA). Vol-14. Issue-5.
Bangladesh Bank (2017), Quarterly Report on Remittance Inflows: July-September 2017. Bangladesh Bank, Research Department, External Economics Division. Retrieved from https://www.bb.org.bd/pub/quaterly/remittance earnings/ dec2014.pdf (Accessed on 24-05-2015).
Bangladesh Bank, (2014).Quarterly Report on Remittance Earnings October-December 2014. Bangladesh Bank, Research Department, External Economics Division. Retrieved fromhttps://www.bb.org.bd/pub/quaterly/remittance earnings/oct-dec2014.pdf (Accessed on 24-05-2015).
Bangladesh Bank, (2017): “Quarterly report on remittance earnings (July-September) 2017”. Research Department & External Economics Divisions, Bangladesh Bank.
Bangladesh Bank, 2016. “Monthly data of wage earner’s remittance”, 2016. Statistics Department & Foreign Exchange Policy Department, Bangladesh Bank.
Bangladesh Economic Update on Remittance, 2011. Vol-2, No-8, Economic Policy Unit, Unnayan Onneshan.
BBS (2016), Report of the survey on investment from remittance (SIR) 2016, Bangladesh Bureau of Statistics (BBS), Statistics and Informatics Division (SID), Ministry of Planning, www.bbs.gov.bd.
Chowdhury I. A. (September-2014): “Impacts of remittance on the socio-economic condition of Bangladesh: An analysis”, Innovative Issues and Approaches in Social Science, Vol-7, No-3. DOI: https://doi.org/10.12959/issn.1855-0541.IIASS-2014-no3-art02
Das, A., and Chowdhury, A., (2011). “Remittances and GDP Dynamics in 11 Developing Countries: Evidence from Panel Cointegration and PMG Technique”, Romanian Economic Journal, 14, 3–24. DOI: https://doi.org/10.5296/rae.v3i1.601
Datta, K., &Sarkar, B. (2014): Relationship between Remittances and Economic Growth in Bangladesh: An Econometric Study (Working Paper No. 19). Retrieved March 05, from, Bangladesh Development Research, website www.bangladeshstudies.org/files/WPS_no19.pdf. DOI: https://doi.org/10.2139/ssrn.2375991
IOM. (2014). Dynamics of Remittance Utilization in Bangladesh. Geneva: International Organization for Migration. Kapur, Devesh. 2004. Remittances: The New Development Mantra? Available online:http://unctad.org/en/Docs/gdsmdpbg2420045_en.pdf (accessed on 15 July 2017).
Paul B. and Das A. (2011). The Remittance-GDP Relationship in the Liberalized Regime of Bangladesh: Cointegration and Innovation Accounting. Theoretical and Applied Economics, Vol. 18, No. 9 (September), pp. 41-60; available at: http://store.ectap.ro/articole/636.pdf.
Rao B. B. & Hassan G. M. (2011), “A panel data analysis of the growth effects of remittances”, Economic Modeling, 28(1-2), 701-709. DOI: https://doi.org/10.1016/j.econmod.2010.05.011
Siddique A. & Selvanathan S. “Remittances and Economic Growth: Empirical Evidence from Bangladesh, India and Sri Lanka”, the Journal of Development Studies, 48(8), 1045- 1062. DOI: https://doi.org/10.1080/00220388.2012.663904
--0--
Downloads
Published
Issue
Section
License
American Journal of Trade and Policy is an Open Access journal. Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal the right of first publication with the work simultaneously licensed under a CC BY-NC 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of their work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal. We require authors to inform us of any instances of re-publication.
How to Cite
