Nonlinear Effects of Remittances on Per Capita GDP Growth in Bangladesh

Hassan, Gazi; Shakur, Shamim

doi:10.3390/economies5030025

Cited by 41 publications

(37 citation statements)

References 29 publications

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“…Hasan and Shakur [17] had worked on a dataset of Bangladesh for the years 1976-2012 and identified a non-linear relationship between remittances and per capita GDP growth. They found a negative growth effect of remittances at first and the effect became positive at a later stage.…”

Section: Literature Reviewmentioning

confidence: 99%

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The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka

Sutradhar

2020

IJEPS

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This paper investigates the impact of workers' remittances on economic growth of four South Asian emerging countries by employing balanced panel data from 1977 to 2016. Pooled OLS, fixed effects, random effects and dummy variable interaction models are used to estimate the impact of remittances. The empirical regression analysis confirms a negative effect of remittances on economic growth in Bangladesh, Pakistan and Sri Lanka. Conversely, remittances have a positive impact on economic growth in India. This study also indicates a joint significant and negative relationship between remittances and economic growth in four countries.

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Section: Literature Reviewmentioning

confidence: 99%

“…This procedure makes recipient families dependent on remittances and takes them away from productive activities. Most of the time, this money is used for consumption rather than productive investment [17].…”

Section: Introductionmentioning

confidence: 99%

The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka

Sutradhar

2020

IJEPS

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“…On the contrary, Reference [1] concludes that at best, workers' remittances have no impact on economic growth. Reference [49] discovered that in Bangladesh, the growth effect of remittances was firstly negative but became positive at a later stage of development in the 1974-2006 period. In this way, Reference [12] shows in his analysis that remittances accentuate, not ameliorate poverty in countries with a low level of financial development.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

2019

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In our paper, we analyse the long-term stability and impact of remittances and development aid on sustainable economic growth in developing countries. We use two data samples from countries that were recipients of both aid and remittances in the corresponding period. First, unbalanced data from the years 1970 to 2017; that is, how countries appear in the data. Second, balanced data, where we selected the largest possible set of countries for which data exists without gaps from the years 1970–2017. This dataset consists of 57 countries for the period from 1991 to 2017. Using linear regression models, we conclude that up until the end of the 1980s, the size of aid as a share of gross domestic product (GDP) was larger than the share of remittances. After that, the situation changed and the shares of both inflows were broadly similar. The inflow of remittances was more stable than the inflow of aid and development aid did not (on the contrary to remittances) contribute positively to sustainable economic growth if we consider the entire period between 1970 and 2017. Our results suggest that a statistically significant relationship between development aid and economic growth (per capita) may be observed only in the period from 1990 to 1999. Economic growth in developing countries is negatively influenced by the uncertainty related to the flows of official development assistance (ODA) and aid in all investigated decades. In the case of the remittance flows, the increased volatility tends to contribute negatively to sustainable economic growth only when the remittance flows represent a relatively higher share of GDP.

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“…International remittances literature is crowded with studies contextualizing Bangladesh like [6,15,[37][38][39][40][41] and its relationship has been explored with numerous economic and household factors using macro-level country data. But unfortunately, its direct linkage with educational and healthcare expenditure of Bangladesh using micro-level data did not catch attention yet.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of International Remittances on Education and Health in Bangladesh

Kumar¹

2019

IJSQA

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Over last few decades international remittances are playing a vital role in the socio-economic development of the developing countries like Bangladesh. Remittance contributes not only in household level but also in community and national level of a country. Although many studies have been carried out on poverty, growth, inequality, unemployment impact of remittances, impact of international remittances on education and health in Bangladesh has not been studied yet. Therefore, this study explores the impact of international remittances on education and health in Bangladesh. In achieving the objective, the study uses primary data collected from 396 households and applies both statistical and econometric methods. Firstly, the study uses statistical approach to bring to light the core scenario of education and health conditions of the households. Secondly, the study separately applies linear regression model estimated through OLS method to examine the impact of international remittances on education and health. The study finds that international remittances have negative and significant impact on education while international remittances have positive and significant on health. This paper finds that if the households receive remittance, the per capita expenditure on health may be increased by Tk. 4817.39 and the per capita expenditure on education may be decreased by Tk. 1020.67. Therefore, the study suggests government and non-government organizations nursing international remittances to improve households' health.

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Nonlinear Effects of Remittances on Per Capita GDP Growth in Bangladesh

Cited by 41 publications

References 29 publications

The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka

The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka

Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries

The Impact of International Remittances on Education and Health in Bangladesh

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