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The Micro Level Impact of Foreign Remittances on Incomes in Bangladesh: A Measurement Approach Using the Propensity Score

Author

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  • MWR Khan

Abstract

This paper is an attempt to carry out a statistical study on the effect of remittances on per capita income, which have a direct implication on the welfare of households. The author argues that such an effort is necessary in order to derive more accurate conclusions which will greatly assist in the formulation of guidelines for future policy. The paper provides a general discussion of remittances in the context of Bangladesh. Laying down the analytical framework of the study with clarification on methodology, it draws on a positive impact of remittances on per capita incomes, and finds out that it contribute approximately upto 18 per cent towards a decline in poverty status. Finally, the paper presents a few policy implications that this study bears.

Suggested Citation

  • MWR Khan, 2008. "The Micro Level Impact of Foreign Remittances on Incomes in Bangladesh: A Measurement Approach Using the Propensity Score," CPD Working Paper 73, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:73
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    References listed on IDEAS

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    1. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    2. Bryson, Alex & Dorsett, Richard & Purdon, Susan, 2002. "The use of propensity score matching in the evaluation of active labour market policies," LSE Research Online Documents on Economics 4993, London School of Economics and Political Science, LSE Library.
    3. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Chrząstowska, Bożena, 2011. "Remittances Development and Growth: Macroeconomic Perspectives in Developing Country," MPRA Paper 104714, University Library of Munich, Germany, revised 2011.
    2. Anca Mehedintu & Georgeta Soava & Mihaela Sterpu, 2019. "The Effect of Remittances on Poverty in the Emerging Countries of the European Union," Sustainability, MDPI, vol. 11(12), pages 1-14, June.
    3. Akasaka, Shintaro, 2017. "Remittances Growth in Developing Country: A Macroeconomic Perspective," MPRA Paper 106361, University Library of Munich, Germany, revised 2017.
    4. Hossain, Sharif M. & Hosoe, Nobuhiro, 2020. "Welfare and equity impacts of cross-border factor mobility in Bangladesh: A general equilibrium analysis," Economic Modelling, Elsevier, vol. 87(C), pages 172-184.
    5. Syed Naimul Wadood & Md. Amzad Hossain, 2017. "Microeconomic impact of remittances on household welfare: Evidences from Bangladesh," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(1), pages 10-29, March.
    6. Bui, Thi Thanh Nga & Le, Thi Thanh Ngan & Daly, Kevin James, 2015. "Microlevel impacts of remittances on household behavior: Viet Nam case study," Emerging Markets Review, Elsevier, vol. 25(C), pages 176-190.
    7. Gazi Mainul Hassan & Shamim Shakur, 2017. "Nonlinear Effects of Remittances on Per Capita GDP Growth in Bangladesh," Economies, MDPI, vol. 5(3), pages 1-11, July.
    8. 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.
    9. Zakiyyah, Varachia, 2018. "Remittances Macroeconomic Growth in a Developing Country," MPRA Paper 106447, University Library of Munich, Germany, revised 2018.
    10. Binhan Elif, Yilmaz, 2011. "An Econometric Analysis of Remittances-Growth: A Macroeconomic Study in Developing Country," MPRA Paper 104371, University Library of Munich, Germany, revised 2011.
    11. 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.
    12. Elena Vitalievna, Lebedeva, 2011. "Impacts of Remittances: Macroeconomic Perspectives in Sending Country," MPRA Paper 104790, University Library of Munich, Germany, revised 2011.
    13. Antonella, Barbarito, 2011. "Macroeconomic Determinants of Remittances: A Case of Developing Country," MPRA Paper 104736, University Library of Munich, Germany, revised 2011.

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