This article shows that the effect of remittances on economic growth involves a U-shaped pattern, which is negative initially but later becomes positive. The analysis differs significantly from earlier studies in that it examines important methodological issues on the specification and estimation of the long-run growth effects of remittances by estimating their impact on total factor productivity (TFP) rather than on the growth rate of GDP, using time series data from Bangladesh. The use of single-equation cointegration methods shows that remittances' effect on long-run growth in Bangladesh is negative and falling until the remittances-to-GDP ratio is roughly eight per cent. The benefits of remittances receipts outweigh their costs and their net effects start to become positive when the ratio exceeds 14 per cent.

Abstract:The paper examines the impact of inward remittances flows on per capita GDP growth in Bangladesh during 1976-2012. We find that the growth effect of remittances is negative at first but becomes positive at a later stage, an evidence of a non-linear relationship. Unproductive use of remittances was rampant in the beginning when they were received by migrant families but better social and economic investments led to more productive utilisation of remittances receipts at later periods. This was the possible mechanism behind the U-shaped relationship. Unlike what is suggested in the literature that the effect of remittances is more pronounced in a less financially developed economy, our evidence do not show that the effect of remittances on per capita GDP growth in Bangladesh is conditional on the level of financial development.JEL Codes: F0, F4, O1.

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Studies were conducted post harvest losses and marketing technologies of agricultural products in Bangladesh with the major objectives to identify the major determents of post harvest factors and to determine the harvest needs of the products for better market profit along with its prioritization. The research works were done using structured technical investigative questionnaire and Focus Group Discussions (FGD). The areas covered were Dinajpur (AEZ 1), Natore (AEZ5), Kustia (AEZ 11), and Tangail-Modhupur (AEZ 28) in Bangladesh, considering diversity of agricultural production. The major findings show that absence of specific post harvest dependent agribusiness policy for government departments but it was a must for looking after agricultural products marketing in Bangladesh. The response in these matters of agribusiness development is similar giving emphasis on improving regulatory environments, creating a contact point for agribusiness administration within MOA, establishing Agro-export processing zones, organizing agribusiness groups and association activities, enhancing research, development of agro-technologies and participation of rural People ensuring income generation. Priority should be given to technologies suitable for small-scale agribusiness entrepreneurs and produces/ processors. The financial institutes, Banks and employment programs should give all type support for agribusiness in an integrated way. The domestic market should have more easy terms with government, giving priority to exporters for import. The contribution of Agribusiness in the national GDP/AGR and other indexes should be spelled out as needed on the basis of which the national priority/privileges should be determined. Further studies in this respect were strongly recommended.

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