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Did Remittance Inflow in Bangladesh Follow the Gravity Path during COVID-19?

Author

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  • Gour Gobinda Goswami

    (Department of Economics, School of Business and Economics, North South University, Dhaka 1229, Bangladesh)

  • Munim Kumar Barai

    (Graduate School of Management, Ritsumeikan Asia Pacific University, Beppu 874-8577, Japan)

  • Mahnaz Aftabi Atique

    (Department of Economics, School of Business and Economics, North South University, Dhaka 1229, Bangladesh)

  • Mostafizur Rahman

    (Department of Economics, School of Business and Economics, North South University, Dhaka 1229, Bangladesh)

Abstract

Remittances are one of the major driving forces of economic growth in Bangladesh. The paper’s main objective is to empirically investigate the effect of COVID-19 on the remittance inflow to Bangladesh using a gravity model framework. We have employed monthly data of remittance inflow to Bangladesh from January 2018 to September 2022 with its top twelve partners, namely the Kingdom of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Libya, the United Kingdom, Italy, Malaysia, Singapore, and Japan. Using the gravity equation, we tapped the COVID-19 dummy as the critical variable of our interest, along with COVID transmission, mortality, and vaccination data at home and abroad. Using Poisson pseudo-maximum likelihood (PPML), fixed-effect (FE), and random-effect (RE) estimations, we find that during the COVID-19 pandemic, remittance inflow to Bangladesh increased significantly after controlling for other Gravity variables.

Suggested Citation

  • Gour Gobinda Goswami & Munim Kumar Barai & Mahnaz Aftabi Atique & Mostafizur Rahman, 2023. "Did Remittance Inflow in Bangladesh Follow the Gravity Path during COVID-19?," Economies, MDPI, vol. 11(11), pages 1-19, November.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:11:p:285-:d:1283916
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    References listed on IDEAS

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    1. Lueth Erik & Ruiz-Arranz Marta, 2008. "Determinants of Bilateral Remittance Flows," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-23, October.
    2. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    3. Sushil Kumar & Shahid Ahmed, 2015. "Gravity Model by Panel Data Approach," Foreign Trade Review, , vol. 50(4), pages 233-249, November.
    4. Rachid Hafsi & Abdelghafour Dadene & Abdelhak Guennoun, 2021. "The Relation between Economic Growth and Oil Production in the Gulf Cooperation Countries: Panel ARDL Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 301-307.
    5. SeyedSoroosh Azizi, 2021. "The impacts of workers’ remittances on poverty and inequality in developing countries," Empirical Economics, Springer, vol. 60(2), pages 969-991, February.
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    Cited by:

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