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Role of Remittance for Improving Quality of Life: Evidence from Bangladesh

Author

Listed:
  • Mohammad A. H. PRADHAN
  • Gias Uddin KHAN

    (Shahjalal Universityof Science and Technology, Bangladesh)

Abstract

Remittance is a considerable source to influence the national economy. As the growing volume of remittance earning has positive impact on income, growth and poverty reduction, the potential contribution for improving quality of life of the domestic people need to be investigated. The main objective of the study was to analyse the contribution of remittance earning on the quality of life in Bangladesh. For the quality of life, HDI index, extensively accepted index consisting income, education and life expectancy, is used. This study covers the data for HDI and remittance earning from 1981 to 2011. The study employed the VEC (Vector Error Correction) model to analysis the desired relation between the variables. The estimated result shows the long run causality running from remittance to HDI. This result implies that the remittance has an influence on the quality of living in long run. To improve the quality of life, the government have the better choice to emphasis on the bottom level people for emigration after suitable training so that they can earn more; consequently send more remittances to their home country.

Suggested Citation

  • Mohammad A. H. PRADHAN & Gias Uddin KHAN, 2015. "Role of Remittance for Improving Quality of Life: Evidence from Bangladesh," Turkish Economic Review, EconSciences Journals, vol. 2(3), pages 160-168, September.
    • Handle: RePEc:cvv:journ2:v:2:y:2015:i:3:p:160-168
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    Keywords

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    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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