The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective

Sunjida Wadud Upama

doi:doi:10.11648/j.ajtab.20230903.11

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The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective

Sunjida Wadud Upama

Published in American Journal of Theoretical and Applied Business (Volume 9, Issue 3)

Received: 22 July 2023 Accepted: 8 August 2023 Published: 17 August 2023

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Abstract

Bangladesh is a lower middle income country in the world with a large share of income earning from foreign workers' remittance and it helps to improve the country’s GDP, enhances national savings, significant changes in household lifestyle, and boosting money flow. Most of the lower and middle-class people in Bangladesh are financially solvent and lead a standard life for the main reason of foreign remittance, because at least one or two members of that family went abroad for the purpose of earning. The second biggest source of foreign exchange earnings is remittance that can be contributed to improve the nation’s capital, BOP (Balance of Payment), and reserve money of the nation. The aim of the study is to find out the remittances and its contribution to economic growth of Bangladesh. This paper reveals the present scenario of remittance inflows in Bangladesh and how it helps to generate national capital reserves and solve the unemployment problem through exporting skill migration to abroad. The study suggests that there is a positive relationship between remittances and economic development and also makes clear policy recommendations that can assure sustainable remittance inflow, ease easy emigration, and direct a sizeable portion of received remittances into productive industries with the goal of boosting growth, creating jobs, and reducing poverty.

Published in	American Journal of Theoretical and Applied Business (Volume 9, Issue 3)
DOI	10.11648/j.ajtab.20230903.11
Page(s)	70-74
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Remittances, Economic Development, GDP, Bangladesh

References

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[3]	Barai, M. K. (2012). Development dynamics of remittances in Bangladesh. Sage Open, 2 (1), 2158244012439073.
[4]	BMET (2023). Bureau of Manpower Employment and Training, Ministry of Expatriate Welfare and Overseas Employment. Retrieved from https://www.thedailystar.net/supplements/32nd anniversary/towards-smart-bangladesh/news/better-care-migrants-can-ensure-higher-remittance-earnings-3244666
[5]	Chowdhury I. A. (2014): “Impacts of remittance on the socio-economic condition of Bangladesh: An analysis”, Innovative Issues and Approaches in Social Science, Vol. 7, No. 3, pp. 23-43.
[6]	Chowdhury, M. B. (2011). Remittances flow and financial development in Bangladesh. Economic Modelling, 28 (6), 2600–2608.
[7]	Comes, C. A., Bunduchi, E., Vasile, V., & Stefan, D. (2018). The impact of foreign direct investments and remittances on economic growth: A case study in Central and Eastern Europe. Sustainability, 10 (1), 1–16.
[8]	Das, A., and Chowdhury, A., (2011). “Remittances and GDP Dynamics in 11 Developing Countries: Evidence from Panel Cointegration and PMG Technique”, Romanian Economic Journal, 14, 3–24.
[9]	Ferdaous, J. (2016). Impact of remittances and FDI on economic growth: A panel data analysis. Journal of Business Studies Quarterly, 8 (2), 58–77.
[10]	Giuliano, P., & Ruiz-Arranz, M., (2005). “Remittances, Financial Development and growth”, IMF Working Paper, WP/05/234.http://www.imf.org/external/pubs/ft/wp/2005/wp05234.pdf
[11]	Jawaid, S. T. and Raza, S. A., (2014). Effects of Workers' Remittances and its Volatility on Economic Growth in South Asia. International Migration. (http://onlinelibrary.wiley.com/doi/10.1111/imig.12151/epdf).
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[16]	Ramirez, M. D. (2013). Do financial and institutional variables enhance the impact of remittances on economic growth in Latin America and the Caribbean? A panel cointegration analysis. International Advances in Economic Research, 19 (3), 273–288.
[17]	Rao, B. B. and Hassan, G. M., (2012). Are the Direct and Indirect Growth Effects of Remittances Significant?. World Economy, 35, 351–372.
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Sunjida Wadud Upama. (2023). The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective. American Journal of Theoretical and Applied Business, 9(3), 70-74. https://doi.org/10.11648/j.ajtab.20230903.11

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ACS Style

Sunjida Wadud Upama. The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective. Am. J. Theor. Appl. Bus. 2023, 9(3), 70-74. doi: 10.11648/j.ajtab.20230903.11

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AMA Style

Sunjida Wadud Upama. The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective. Am J Theor Appl Bus. 2023;9(3):70-74. doi: 10.11648/j.ajtab.20230903.11

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@article{10.11648/j.ajtab.20230903.11,
  author = {Sunjida Wadud Upama},
  title = {The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {9},
  number = {3},
  pages = {70-74},
  doi = {10.11648/j.ajtab.20230903.11},
  url = {https://doi.org/10.11648/j.ajtab.20230903.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20230903.11},
  abstract = {Bangladesh is a lower middle income country in the world with a large share of income earning from foreign workers' remittance and it helps to improve the country’s GDP, enhances national savings, significant changes in household lifestyle, and boosting money flow. Most of the lower and middle-class people in Bangladesh are financially solvent and lead a standard life for the main reason of foreign remittance, because at least one or two members of that family went abroad for the purpose of earning. The second biggest source of foreign exchange earnings is remittance that can be contributed to improve the nation’s capital, BOP (Balance of Payment), and reserve money of the nation. The aim of the study is to find out the remittances and its contribution to economic growth of Bangladesh. This paper reveals the present scenario of remittance inflows in Bangladesh and how it helps to generate national capital reserves and solve the unemployment problem through exporting skill migration to abroad. The study suggests that there is a positive relationship between remittances and economic development and also makes clear policy recommendations that can assure sustainable remittance inflow, ease easy emigration, and direct a sizeable portion of received remittances into productive industries with the goal of boosting growth, creating jobs, and reducing poverty.},
 year = {2023}
}

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TY  - JOUR
T1  - The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective
AU  - Sunjida Wadud Upama
Y1  - 2023/08/17
PY  - 2023
N1  - https://doi.org/10.11648/j.ajtab.20230903.11
DO  - 10.11648/j.ajtab.20230903.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 70
EP  - 74
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20230903.11
AB  - Bangladesh is a lower middle income country in the world with a large share of income earning from foreign workers' remittance and it helps to improve the country’s GDP, enhances national savings, significant changes in household lifestyle, and boosting money flow. Most of the lower and middle-class people in Bangladesh are financially solvent and lead a standard life for the main reason of foreign remittance, because at least one or two members of that family went abroad for the purpose of earning. The second biggest source of foreign exchange earnings is remittance that can be contributed to improve the nation’s capital, BOP (Balance of Payment), and reserve money of the nation. The aim of the study is to find out the remittances and its contribution to economic growth of Bangladesh. This paper reveals the present scenario of remittance inflows in Bangladesh and how it helps to generate national capital reserves and solve the unemployment problem through exporting skill migration to abroad. The study suggests that there is a positive relationship between remittances and economic development and also makes clear policy recommendations that can assure sustainable remittance inflow, ease easy emigration, and direct a sizeable portion of received remittances into productive industries with the goal of boosting growth, creating jobs, and reducing poverty.
VL  - 9
IS  - 3
ER  -

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Author Information

Sunjida Wadud Upama

Department of Natural Science, Port City International University, Chattogram, Bangladesh

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Plain Text BibTeX RIS

APA Style

Sunjida Wadud Upama. (2023). The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective. American Journal of Theoretical and Applied Business, 9(3), 70-74. https://doi.org/10.11648/j.ajtab.20230903.11

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ACS Style

Sunjida Wadud Upama. The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective. Am. J. Theor. Appl. Bus. 2023, 9(3), 70-74. doi: 10.11648/j.ajtab.20230903.11

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AMA Style

Sunjida Wadud Upama. The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective. Am J Theor Appl Bus. 2023;9(3):70-74. doi: 10.11648/j.ajtab.20230903.11

Copy | Download

@article{10.11648/j.ajtab.20230903.11,
  author = {Sunjida Wadud Upama},
  title = {The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {9},
  number = {3},
  pages = {70-74},
  doi = {10.11648/j.ajtab.20230903.11},
  url = {https://doi.org/10.11648/j.ajtab.20230903.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20230903.11},
  abstract = {Bangladesh is a lower middle income country in the world with a large share of income earning from foreign workers' remittance and it helps to improve the country’s GDP, enhances national savings, significant changes in household lifestyle, and boosting money flow. Most of the lower and middle-class people in Bangladesh are financially solvent and lead a standard life for the main reason of foreign remittance, because at least one or two members of that family went abroad for the purpose of earning. The second biggest source of foreign exchange earnings is remittance that can be contributed to improve the nation’s capital, BOP (Balance of Payment), and reserve money of the nation. The aim of the study is to find out the remittances and its contribution to economic growth of Bangladesh. This paper reveals the present scenario of remittance inflows in Bangladesh and how it helps to generate national capital reserves and solve the unemployment problem through exporting skill migration to abroad. The study suggests that there is a positive relationship between remittances and economic development and also makes clear policy recommendations that can assure sustainable remittance inflow, ease easy emigration, and direct a sizeable portion of received remittances into productive industries with the goal of boosting growth, creating jobs, and reducing poverty.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - The Role of Remittances on National Economic Development: A Study on Bangladesh Perspective
AU  - Sunjida Wadud Upama
Y1  - 2023/08/17
PY  - 2023
N1  - https://doi.org/10.11648/j.ajtab.20230903.11
DO  - 10.11648/j.ajtab.20230903.11
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 70
EP  - 74
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20230903.11
AB  - Bangladesh is a lower middle income country in the world with a large share of income earning from foreign workers' remittance and it helps to improve the country’s GDP, enhances national savings, significant changes in household lifestyle, and boosting money flow. Most of the lower and middle-class people in Bangladesh are financially solvent and lead a standard life for the main reason of foreign remittance, because at least one or two members of that family went abroad for the purpose of earning. The second biggest source of foreign exchange earnings is remittance that can be contributed to improve the nation’s capital, BOP (Balance of Payment), and reserve money of the nation. The aim of the study is to find out the remittances and its contribution to economic growth of Bangladesh. This paper reveals the present scenario of remittance inflows in Bangladesh and how it helps to generate national capital reserves and solve the unemployment problem through exporting skill migration to abroad. The study suggests that there is a positive relationship between remittances and economic development and also makes clear policy recommendations that can assure sustainable remittance inflow, ease easy emigration, and direct a sizeable portion of received remittances into productive industries with the goal of boosting growth, creating jobs, and reducing poverty.
VL  - 9
IS  - 3
ER  -

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