IDEAS home Printed from https://ideas.repec.org/a/agr/journl/v9(562)y2011i9(562)p41-60.html
   My bibliography  Save this article

The Remittance-GDP Relationship in the Liberalized Regime of Bangladesh: Cointegration and Innovation Accounting

Author

Listed:
  • Biru Paksha PAUL

    (State University of New York)

  • Anupam DAS

    (Mount Royal University)

Abstract

Bangladesh, being one of the top remittance-recipient countries in the world, has drawn attention to the remittance-output relationship in recent years. The results on this aspect are nevertheless inconclusive. Working on a relatively liberalized regime from 1979 to 2009, this study finds a long run positive relationship between remittances and GDP in Bangladesh. The adjustment of this relation, however, goes against traditional belief in that GDP does not respond to the movements in remittances while correcting disequilibrium after a shock in the system, but the reverse is true. There is no evidence on remittance-led growth in the short run. Innovation accounting shows that the impact of output on remittances is remarkably stronger than that of remittances on output. These findings have policy implications for other emerging nations in that GDP growth is capable of attracting further remittances arguably through increasing investment demand and initiating institutional reforms in the economy.

Suggested Citation

  • Biru Paksha PAUL & Anupam DAS, 2011. "The Remittance-GDP Relationship in the Liberalized Regime of Bangladesh: Cointegration and Innovation Accounting," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(9(562)), pages 41-60, September.
    • Handle: RePEc:agr:journl:v:9(562):y:2011:i:9(562):p:41-60
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/636.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=636&rid=78
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ali Emam , Md & Chen, Tinggui & Leibrecht, Markus, 2021. "Inward Worker Remittances and Economic Growth: The Case of Bangladesh," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 28(2), pages 43-62, December.
    2. Md. Golam Mostafa & Md. Abdul Wadud, 2024. "Impacts of Remittance and FDI on Economic Growth in South Asian Countries: A Panel Data Analysis," International Journal of Science and Business, IJSAB International, vol. 40(1), pages 92-106.
    3. Khan, Adnan, 2020. "A Bibliography Search on International Migration and Remittances Literature during the period of 1971-2020: A Case of Bangladesh," MPRA Paper 108143, University Library of Munich, Germany, revised 2020.
    4. Florije Govori & Amant Fejzullahu, 2020. "External Financial Flows and GDP Growth in Kosovo," Journal of Developing Societies, , vol. 36(1), pages 56-76, March.
    5. Emon Kalyan Chowdhury & Bablu Kumar Dhar & Md.Abu Issa Gazi, 2023. "Impact of Remittance on Economic Progress: Evidence from Low-Income Asian Frontier Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 382-407, March.
    6. Anupam Das & Murshed Chowdhury, 2019. "Macroeconomic impacts of remittances in Bangladesh: The role of reverse flows," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(3), November.
    7. Sarker Masud & Islam Shahidul, 2018. "Impacts of International Migration on Socio-Economic Development in Bangladesh," European Review of Applied Sociology, Sciendo, vol. 11(16), pages 27-35, June.
    8. Soma Rani Sutradhar, 2020. "The impact of remittances on economic growth in Bangladesh, India, Pakistan and Sri Lanka," International Journal of Economic Policy Studies, Springer, vol. 14(1), pages 275-295, February.
    9. Khan, Adnan & Mrs, Sultana, 2021. "International Remittances Literature: A Study in Bangladesh during the period of 1971-2020," MPRA Paper 108290, University Library of Munich, Germany, revised 2021.
    10. Syed Zeeshan Zafar & Muhammad Siddique & Haroon Ahmad & Tahir Ahmad Khan, 2016. "The Economic Implications of Remittances on Economic Growth: The Case Study of Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(7), pages 215-222, July.
    11. Mduduzi Biyase & Mathias Manguzvane & Thomas Udiman, 2022. "Remittances And Economic Growth In South Africa: Applying Ardl Bounds Testing Analysis In The Presence Of Structural Breaks," Economics Working Papers edwrg-07-2022, College of Business and Economics, University of Johannesburg, South Africa, revised 2022.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:9(562):y:2011:i:9(562):p:41-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.