Remittances flow and financial development in Bangladesh

Chowdhury, Mamta Banu

doi:10.1016/j.econmod.2011.07.013

Cited by 103 publications

(88 citation statements)

References 16 publications

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“…Secondly, private domestic deposit (deposit) to GDP and finally, bank credit (credit) to GDP. It is expected that the association between remittances and financial development is to be positive because increasing trend of remittance flows may directly enhance deposit, credit and money availability (Chowdhury, 2011). Nonetheless, steady flow of remittances may decrease the saving efforts of the recipient families and hinder the intermediation of the financial sector (Aggarwal et al, 2011).…”

Section: Data and Empirical Modelmentioning

confidence: 99%

“…During the British period, people from Bangladesh also migrated to Assam and Burma. The then Burma was one of the major destination and a significant number of people had migrated to Bhurma, as, at that time Burma was the thriving economy (Chowdhury, 2011). Since, the early eighteen century and onwards, sailors originating from the southeastern part of Bangladesh and landless farmers of northern Sylhet district found employment in the British merchant navy and travelled different parts of the world (Bruyn and Kuddus, 2005).…”

Section: Workers' Migration and Remittance Inflow In Bangladesh: Histmentioning

confidence: 99%

“…Reviewing the existing literature is mostly focused on the issues of economic growth, financial development and poverty alleviation effects on remittance inflow for the remittance receiving developing countries (Barajas et al, 2009;Chami et al, 2003;Chowdhury, 2011). This short literature review is divided into two segments: presenting the cross-country and panel works, and finally concentrating on Bangladesh issues.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…Following conventional measure, openness in goods market is measured by exports plus imports as a ratio of GDP. Increased openness in the goods is expected to increase use of numerous financial products and services and tends to expand the sector (Chowdhury, 2011).…”

Section: Data and Empirical Modelmentioning

confidence: 99%

“…Using annual data spanning from 1976 to 2010 and employing Autoregressive Distributed Lag (ARDL) bounds testing approach find that remittance does not appear to be a long-run forcing variable to the explanation of Bangladesh's economic growth. Furthermore, applying co-integration and Vector Error Correction Model (VECM) Chowdhury (2011) explored that the increasing flow of remittance is positively and significantly expanding and deepening the financial sector of Bangladesh over the 1971-2008 period. However, the starting period of remittance data in this study is somewhat questionable due to data availability.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

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Workers’ Remittance Inflow, Financial Development and Economic Growth: A Study on Bangladesh

Masuduzzaman¹

2014

IJEF

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The objective of this article is to analyze the role of remittance on economic growth and to investigate the interaction of remittance with the financed development of Bangladesh using annual data, relatively liberalized regime spanning from 1981 to 2013. This study employed the mostly used Johansen co-integration test along with vector error correction model to reveal both the short-run and the long-run association between remittance-growth and remittance-financed development. Granger Causality tests are also used to explore the possible endogenous relationship between remittance-growth and remittance-financed development. This study finds a long run positive relationship between inflow of remittance and gross domestic products (GDP) indicating that remittance will be more likely to contribute to longer-term growth in Bangladesh. It is also revealed that remittances have a significant positive effect on financial development. Therefore, this study posits that the inflow of workers' remittance matters for countries like Bangladesh, which has a relatively growing economy and a developing financial sector. The paper also discusses a number of policy issues arising from the results of the analysis in relation to remittance in association with managing migration and remittance, skilled development of the migrants, Dutch disease effect, returnee expatriates and gender issues. While examining the channels the direct impact of remittance on poverty reduction (household welfare) remains an area of research for the future. The outcome of this study will be a clear understanding of the key factors affecting workers' remittance, growth and financial development, which will be relevant to policy makers to have detailed appraisals of remittance polices and their expected economic impact on Bangladesh and other remittance recipients country as well.

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Section: Data and Empirical Modelmentioning

confidence: 99%

Section: Workers' Migration and Remittance Inflow In Bangladesh: Histmentioning

confidence: 99%

Section: Brief Literature Reviewmentioning

confidence: 99%

Section: Data and Empirical Modelmentioning

confidence: 99%

Section: Brief Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Workers’ Remittance Inflow, Financial Development and Economic Growth: A Study on Bangladesh

Masuduzzaman¹

2014

IJEF

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Exchange rate misalignment and financial development in Africa

Nchofoung,

Ojong,

Gachili

2024

Int. J Fin Econ

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We examine the effect of misaligned exchange rates on financial development in Africa. Results from quantile regression techniques and the IV Lewbel estimator reveal that exchange rate misalignment significantly hampers financial development on that continent. This result is robust across financial institutions and financial markets. We also show that while the effects of misaligned exchange rates are negative on financial institutions and positive on financial markets in African franc‐zone countries, the effects are consistently negative across all financial sectors in the non‐franc‐zone countries there. When robustness assessment is done using quantile regression, the results show that the negative effect of misalignment on financial development is only feasible from the 75th percentile and higher in Africa in general and for the non‐franc‐zone countries in particular.

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Effect of foreign direct investment, remittances, and foreign aid on economic growth: Evidence from two emerging South Asian economies

Das

Sethi

2019

Journal of Public Affairs

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This paper analyzes the effect of foreign direct investment, remittances, and official development assistance on economic growth in India and Sri Lanka. The study uses annual time series data of both countries for the period 1980–2016. In order to find the short‐run and long‐run relationship among the variables, we use Granger causality test and vector error correction model. We also carry out a vector decomposition analysis to predict the forecast variance error of the future periods and impulse response function to analyze the effect of shocks in the independent variables on that of the dependent variable. Our results indicate that foreign direct investment and remittances have a significant impact on economic growth in India, whereas in Sri Lanka, foreign aid and remittances play an important role in enhancing economic growth.

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Remittances flow and financial development in Bangladesh

Cited by 103 publications

References 16 publications

Workers’ Remittance Inflow, Financial Development and Economic Growth: A Study on Bangladesh

Workers’ Remittance Inflow, Financial Development and Economic Growth: A Study on Bangladesh

Exchange rate misalignment and financial development in Africa

Effect of foreign direct investment, remittances, and foreign aid on economic growth: Evidence from two emerging South Asian economies

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