Impact of foreign remittances on the household spending behaviour in Bangladesh

Abstract

This paper analyses the impact of international remittances on household spending behaviour in the Bangladesh context. The total household spending has been classified into seven categories, namely education, health, food, consumed and durable goods, housing and land, investment and 'other consumption'. For addressing the self-selection bias, we applied the propensity score matching technique. Moreover, to analyse the impact of remittances on the marginal spending behaviour we applied the Working-Leser (WL) model. Findings from the study reveal that remittances have positive and significant impact on the amount spent on almost all the spending categories except education, and investment. In terms of budgetary shares of different spending categories, households receiving remittances spend a lower fraction of their total spending on food and investment. Although the impact of remittances is positive and significant for the budget shares of health, housing and land, it is found to be insignificant for education and consumed and durables goods.

Analysis of the impact of social grants on food security in Gauteng province of South Africa

“…Income significantly impacts on household food security. The findings of this study thus, do 170 not support the position of Engel's Law that households spend less on food as income increases (Raihan, 2022).…”

Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

“…The contribution from this study to the existing literature is three-fold. First, the impact of remittances on the economy, precisely focusing on both macro aspects, including economic, financial development (Ahmed et al, 2021;Bolarinwa and Akinbobola, 2021;Ellahi and Omer, 2021), financial inclusion (Issabayev et al, 2020;Barnabe, 2021), and macro aspects, such as household consumption (Raihan et al, 2009(Raihan et al, , 2021Kumar et al, 2021), education (Zhunio et al, 2012;Ambler et al, 2015), and social security (De Haas, 2010;Peth and Sakdapolrak, 2020) have been investigated but there is yet any conclusive evidence. However, the impact of remittances is undoubtedly acknowledged and appreciated in literature from every corner of the economy.…”

Impact of Migration on Time Use Pattern of Left-Behind Male and Female in Rural Bangladesh

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