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Macroeconomic Impact of Migrant Workers' Remittances in Bangladesh

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  • Bimal Sarkar

Abstract

Bangladesh being over populated is a cheap less-skilled and semi-skilled labor supplier country in the world and earning huge remittances from the abroad. This paper attempts to examine the dynamic effects of remittances on some important macroeconomic variables like consumption, investment, imports and economic growth in both the short and the long run in Bangladesh covering a period (1977-2014) following Nicholas P.Glytsos (2002) of Keynesian-type econometric model. The study finds using two-stage least square (2SLS) technique that one Taka increase in remittances contributes 3.15 Taka in income in Bangladesh through the impact multiplier as well as dynamic multipliers from the first year to seventh year.

Suggested Citation

  • Bimal Sarkar, 2019. "Macroeconomic Impact of Migrant Workers' Remittances in Bangladesh," Journal of Global Economy, Research Centre for Social Sciences,Mumbai, India, vol. 15(3), pages 167-188, September.
    • Handle: RePEc:jge:journl:1532
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    More about this item

    Keywords

    Remittances; Consumption; Investment; Imports; Economic Growth;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • I2 - Health, Education, and Welfare - - Education

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