Financial Sector Development and the Preference for Informal Remittance Channels: Evidence from Bangladesh

Uddin, Azad; Ichihashi, Masaru; Barua, Shubhasish

doi:10.1080/00220388.2022.2029420

Cited by 5 publications

(5 citation statements)

References 18 publications

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“…We also extend the literature concerning the connection between remittances and financial development (Aggarwal et al, 2011;Demirg üc ¸-Kunt et al, 2011;Ambrosius and Cuecuecha, 2016;Fromentin, 2018;Uddin et al, 2022). 5 Using an event study approach, we find the elasticity between distance and transaction bank accounts became negative during the early COVID-19 period.…”

Section: Introductionsupporting

confidence: 61%

Neither by Land Nor by Sea: The Rise of Electronic Remittances during COVID-19

Dinarte-Diaz¹,

Jaume²,

Medina-Cortina³

et al. 2022

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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Section: Introductionsupporting

confidence: 61%

Neither by Land Nor by Sea: The Rise of Electronic Remittances during COVID-19

Dinarte-Diaz¹,

Jaume²,

Medina-Cortina³

et al. 2022

Policy Research Working Papers

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“…Others highlight the important role of FDI (Kee, 2015;Rhee, 1990), remittances (Siddique & Billah, 2012;Uddin et al, 2022), infrastructure (Ahamad & Nazrul Islam, 2011;Khandker et al, 2009), and female empowerment, as well as broader social progress (Ahmed & McGillivray, 2015;Asadullah et al, 2014;Islam & Pakrashi, 2020). More policy-oriented and opinion pieces have echoed the importance of the latter (e.g., Basu, 2018Basu, , 2021 and put it in the broader macroeconomic context of public service provision (Subramanian, 2021).…”

Section: Liter Ature Re Vie Wmentioning

confidence: 99%

“…Several studies have investigated specific factors that may have contributed to Bangladesh's success, such as the export sector (Begum & Shamsuddin, 1998) and in particular the garment industry (Hausmann & Rodrik, 2003; Kee, 2015; Mottaleb & Sonobe, 2011; Yang & Mlachila, 2007) and its relationship with governance (Ahmed et al., 2014; Khan & Milne, 2019). Others highlight the important role of FDI (Kee, 2015; Rhee, 1990), remittances (Siddique & Billah, 2012; Uddin et al., 2022), infrastructure (Ahamad & Nazrul Islam, 2011; Khandker et al., 2009), and female empowerment, as well as broader social progress (Ahmed & McGillivray, 2015; Asadullah et al., 2014; Islam & Pakrashi, 2020). More policy‐oriented and opinion pieces have echoed the importance of the latter (e.g., Basu, 2018, 2021) and put it in the broader macroeconomic context of public service provision (Subramanian, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Good enough for outstanding growth: The experience of Bangladesh in comparative perspective

Beyer,

Wacker

2023

Development Policy Review

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Motivationangladesh's economic growth rate over the past three decades has been one of the highest in the world. This success is difficult to reconcile with a single macroeconomic explanation of development.PurposePrevious studies have investigated individual aspects that can explain Bangladesh's successful development. But a consistent account of how individual factors contributed to growth is currently missing. Can factors that correlate with growth in other countries explain the outstanding growth performance of Bangladesh? Or is the country's experience unique?Methods and approachWe construct a panel data set for 149 countries since 1970 and combine growth regression techniques with a peer group comparison. Different specifications, subsamples, and estimation techniques are considered.FindingsFactors correlating with growth in other countries can well‐explain the growth experience of Bangladesh. But two features are specific to the country. First, a combination of “good enough” policies led to considerable growth impulses from 1990 to 2005: the country's improvements in typical correlates of growth during this period were among the global top 5% for any 15‐year period investigated. Second, despite the absence of major reforms after 2005, Bangladesh defied the mean reversion in growth rates that most fast‐growing economies and peer countries experience.Policy implicationsOur results support the idea that a combination of “good enough” policies can jumpstart high growth in low‐income countries. Our findings further demonstrate that a stable macroeconomic and institutional environment helps to reap benefits of structural improvements in the long run.

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“…Till now, the country's banking networks in rural and semi-urban areas are very limited. Along with costs, the lack of availability of banking networks is one of the main reasons for availing informal channels for sending remittances (Uddin, et al, 2022). On the other hand, the Hundi agents directly deliver the cash money to the families of migrant workers at their homes in remote rural areas.…”

Section: Factors Contributing To Informal Remittance Inflowmentioning

confidence: 99%