The purpose of the paper is to investigate the impacts of economic and non-economic factors on the remittance receiving of Bangladesh. The study focuses on quantitative analysis of unbalanced panel data of 8 countries on remittance receiving of Bangladesh for the period of 1981-2019 by employing fixed effects model and random effects model. The results show that crude oil price, domestic credit to private sector of host country, and global financial crisis of 2008-10 have significant positive impact on remittance receiving of Bangladesh. GDP per capita of home country has significant negative impact which is an evidence of altruistic motive of migrant workers to remit more money. The impact of terrorist attacks on September 11, 2001 is found significantly positive as it resulted into strict change in monetary regulation by spreading more money from informal channel to formal channel. The political unrest in Bangladesh during 2007-08 has insignificant positive impact what means the non-democratic and army backed 1/11 government did not help to grow the remittance receiving. Inflation rate of host country has insignificant positive impact and FDI to GDP of host country has insignificant negative impact.Contribution/Originality: This paper documents the altruistic motive of migrant workers to send more remittances. This is the first study which has investigated 1/11 government effect on remittance receiving of Bangladesh. This paper adds value to the remittance related literature views. The findings can help to modify polices to increase remittance receiving.
INTRODUCTIONIncome received from the migrant workers of many developing countries has become one of the largest sources of external financing and capital accumulation for gearing up the economic development, reducing poverty and increasing foreign exchange reserve (Abduvaliev & Bustillo, 2019). Bangladesh is a developing market economy and currently it's 41 st largest economy in the world with an estimation of securing 24 th position by 2033 (The Daily Star, 2019). Bangladesh surprised the world by securing top position through achieving 188% GDP growth whereas China achieved 177%, India achieved 117%, and Malaysia achieved 78% in world's GDP growth list in the last 10 years on the basis of current price method as per Spectator Index-2019(Dhaka Tribune, 2019.Remittance receiving of Bangladesh has a big contribution for such surprising economic growth. Bangladesh is in the 3 rd position in Asia and 11 th in the world in terms of remittance recipient of the world (The Daily Star, 2019).