Determinants of Workers’ Remittances in Bangladesh: An Empirical Study
AbstractThe purpose of this paper is to identify macroeconomic determinants of inflow of workers’ remittances in the context of Bangladesh. We used a balanced panel dataset of bilateral remittance flows from 10 major host countries (of Bangladeshi migrants’) to Bangladesh over the 1993 to 2005 period. We found that income differential between host and home country is positively correlated with the inflow of remittances. We explained the above findings as an indication of altruistic motive to remit. On the other hand there are some indications of investment motive to remit in the dataset. Inflation differential between home and host country is also found to be negatively correlated with the inflow of remittances, indicating that higher inflation in home country relative to host country may have exerted some negative effect on workers’ remittances. Devaluation of domestic currency or (increase in exchange rate) appeared to be positively correlated with the flow of workers’ remittances in Bangladesh.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15080.
Date of creation: Jun 2007
Date of revision:
Find related papers by JEL classification:
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F24 - International Economics - - International Factor Movements and International Business - - - Remittances
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schiopu, Ioana & Siegfried, Nikolaus, 2006. "Determinants of workers’ remittances: evidence from the European Neighbouring Region," Working Paper Series, European Central Bank 0688, European Central Bank.
- Samir Jahjah & Ralph Chami & Connel Fullenkamp, 2003.
"Are Immigrant Remittance Flows a Source of Capital for Development,"
IMF Working Papers
03/189, International Monetary Fund.
- Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
- Carlos Vargas-Silva & Peng Huang, 2005.
"Macroeconomic Determinants of Workers’ Remittances: Host vs. Home Country’s Economic Conditions,"
International Finance, EconWPA
0507007, EconWPA, revised 29 Jul 2005.
- Carlos Vargas-Silva & Peng Huang, 2006. "Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 15(1), pages 81-99.
- Jacques Bouhga-Hagbe, 2006. "Altruism and Workers' Remittances," IMF Working Papers 06/130, International Monetary Fund.
- Poonam Gupta, 2005. "Macroeconomic Determinants of Remittances," IMF Working Papers 05/224, International Monetary Fund.
- Osman Tuncay Aydas & Kivilcim Metin-Ozcan & Bilin Neyapti, 2005.
"Determinants of Workers' Remittances : The Case of Turkey,"
Emerging Markets Finance and Trade, M.E. Sharpe, Inc.,
M.E. Sharpe, Inc., vol. 41(3), pages 53-69, May.
- Bilin Neyapti & Kivilcim Metin-Ozcan & Osman Tuncay Aydas, 2004. "Determinants of Workers Remittances : The Case of Turkey," Departmental Working Papers, Bilkent University, Department of Economics 0405, Bilkent University, Department of Economics.
- Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 04/194, International Monetary Fund.
- Sk. Mahmudul Alam, Mahmud, 2012. "Microfinance institutions will be an important instrument to earn more remittance, send remittance and utilize remittance in Bangladesh," MPRA Paper 36459, University Library of Munich, Germany, revised 14 Feb 2012.
- Hassan, Gazi & Shakur, Shamim & Bhuyan, Mohammed, 2012. "Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh," MPRA Paper 40086, University Library of Munich, Germany.
- Mazhar MUGHAL & Junaid AHMED, 2013. "Remittances and Business Cycles: Comparison of South Asian Countries," Working Papers 2012-2013_4, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Jan 2013.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.