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Determinants of Workers’ Remittances in Bangladesh: An Empirical Study

Author

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  • Barua, Shubhasish
  • Majumder, Md. Alauddin
  • Akhtaruzzaman, Dr. Md.

Abstract

The purpose of this paper is to identify macroeconomic determinants of inflow of workers’ remittances in the context of Bangladesh. We used a balanced panel dataset of bilateral remittance flows from 10 major host countries (of Bangladeshi migrants’) to Bangladesh over the 1993 to 2005 period. We found that income differential between host and home country is positively correlated with the inflow of remittances. We explained the above findings as an indication of altruistic motive to remit. On the other hand there are some indications of investment motive to remit in the dataset. Inflation differential between home and host country is also found to be negatively correlated with the inflow of remittances, indicating that higher inflation in home country relative to host country may have exerted some negative effect on workers’ remittances. Devaluation of domestic currency or (increase in exchange rate) appeared to be positively correlated with the flow of workers’ remittances in Bangladesh.

Suggested Citation

  • Barua, Shubhasish & Majumder, Md. Alauddin & Akhtaruzzaman, Dr. Md., 2007. "Determinants of Workers’ Remittances in Bangladesh: An Empirical Study," MPRA Paper 15080, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15080
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    References listed on IDEAS

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    Cited by:

    1. Yousaf Zaman & Khair-Uz-Zaman & Shadiullah Khan, 2014. "Macro Level Determinants of Remittances to Pakistan," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 2(3), pages 142-155.
    2. International Labour Office & International Institute for Labour Studies, 2013. "Bangladesh : improving employment conditions," Studies on Growth with Equity 481441, International Labour Office, Research Department.
    3. Kundu, Nobinkhor, 2015. "An Enquiry into the Sluggish Growth of Workers’ Remittance Determinants: A Case of Comilla," MPRA Paper 74800, University Library of Munich, Germany.
    4. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.
    5. Hassan, Gazi & Shakur, Shamim & Bhuyan, Mohammed, 2012. "Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh," MPRA Paper 40086, University Library of Munich, Germany.
    6. Antonella, Barbarito, 2011. "Macroeconomic Determinants of Remittances: A Case of Developing Country," MPRA Paper 104736, University Library of Munich, Germany, revised 2011.
    7. International Labour Office. & International Institute for Labour Studies., 2013. "Bangladesh : improving employment conditions," Studies on Growth with Equity, International Labour Office, Research Department, number 994814413402676, October.
    8. Ebele Stella Nwokoye & Clement Izuchukwu Igbanugo & Stephen Kelechi Dimnwobi, 2020. "International migrant remittances and labour force participation in Nigeria," African Development Review, African Development Bank, vol. 32(2), pages 125-137, June.
    9. Mohammad A. H. PRADHAN & Gias Uddin KHAN, 2015. "Role of Remittance for Improving Quality of Life: Evidence from Bangladesh," Turkish Economic Review, KSP Journals, vol. 2(3), pages 160-168, September.
    10. 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.
    11. Mamun, Md. Al & Sohag, Kazi & Uddin, Gazi Salah & Shahbaz, Muhammad, 2015. "Remittance and domestic labor productivity: Evidence from remittance recipient countries," Economic Modelling, Elsevier, vol. 47(C), pages 207-218.
    12. Munim K. Barai, 2012. "Development Dynamics of Remittances in Bangladesh," SAGE Open, , vol. 2(1), pages 21582440124, January.
    13. Haryo Kuncoro, 2020. "The role of exchange rate in remittance inflows: Evidence from Indonesia," Economics Bulletin, AccessEcon, vol. 40(2), pages 1508-1521.
    14. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.
    15. 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.
    16. 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.
    17. Imene Guetat & Dorsaf Sridi, 2017. "Institutional quality effect on remittances in MENA region," Middle East Development Journal, Taylor & Francis Journals, vol. 9(1), pages 84-100, January.
    18. Sk. Mahmudul Alam, Mahmud, 2012. "Microfinance institutions will be an important instrument to earn more remittance, send remittance and utilize remittance in Bangladesh," MPRA Paper 36459, University Library of Munich, Germany, revised 14 Feb 2012.
    19. Safaa Tabit & Charaf-Eddine Moussir, 2016. "Macroeconomic Determinants of Migrants’ Remittances: Evidence from a Panel of Developing Countries," International Journal of Business and Social Research, LAR Center Press, vol. 6(7), pages 1-11, July.
    20. Chrząstowska, Bożena, 2011. "Remittances Development and Growth: Macroeconomic Perspectives in Developing Country," MPRA Paper 104714, University Library of Munich, Germany, revised 2011.
    21. 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.
    22. Elena Vitalievna, Lebedeva, 2011. "Impacts of Remittances: Macroeconomic Perspectives in Sending Country," MPRA Paper 104790, University Library of Munich, Germany, revised 2011.
    23. Kazi Abdul, Mannan & LJ, Fredericks, 2015. "The New Economics of Labour Migration (NELM):Econometric Analysis of Remittances from Italy to Rural Bangladesh Based on Kinship Relation," MPRA Paper 97444, University Library of Munich, Germany, revised 2015.
    24. Mohammed Ziaul Haider & Tanbir Hossain & Ohidul Islam Siddiqui, 2016. "Impact of Remittance on Consumption and Savings Behavior in Rural Areas of Bangladesh," Journal of Business, LAR Center Press, vol. 1(4), pages 25-34, September.

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    More about this item

    Keywords

    Workers’ remittances;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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