IDEAS home Printed from
   My bibliography  Save this paper

Determinants of Workers’ Remittances in Bangladesh: An Empirical Study


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


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

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    1. Osman Tuncay Aydas & Kivilcim Metin-Ozcan & Bilin Neyapti, 2005. "Determinants of Workers' Remittances : The Case of Turkey," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(3), pages 53-69, May.
    2. Ralph Chami & Connel Fullenkamp & Samir Jahjah, 2005. "Are Immigrant Remittance Flows a Source of Capital for Development?," IMF Staff Papers, Palgrave Macmillan, vol. 52(1), pages 55-81, April.
    3. Zulfiqar Hyder, 2003. "Workers’ Remittances, Resident FCAs and Kerb Premium: a Cointegration Analysis," SBP Working Paper Series 03, State Bank of Pakistan, Research Department.
    4. Carlos Vargas-Silva & Peng Huang, 2006. "Macroeconomic determinantsof workers' remittances: Hostversus home country's economic conditions," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(1), pages 81-99.
    5. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 04/194, International Monetary Fund.
    6. Jacques Bouhga-Hagbe, 2006. "Altruism and Workers’ Remittances; Evidence from Selected Countries in the Middle East and Central Asia," IMF Working Papers 06/130, International Monetary Fund.
    7. Poonam Gupta, 2005. "Macroeconomic Determinants of Remittances; Evidence from India," IMF Working Papers 05/224, International Monetary Fund.
    8. Siegfried, Nikolaus & Schiopu, Ioana, 2006. "Determinants of workers' remittances: evidence from the European Neighbouring Region," Working Paper Series 688, European Central Bank.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:rss:jnljfe:v2i3p5 is not listed on IDEAS
    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. 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.
    7. 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.
    8. 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.
    9. repec:gam:jecomi:v:5:y:2017:i:3:p:25-:d:104888 is not listed on IDEAS
    10. 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.
    11. Imene Guetat & Dorsaf Sridi, 2014. "Institutional Quality Effect on Remittances in the MENA Region," Working Papers 864, Economic Research Forum, revised Nov 2014.
    12. 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, MIR Center for Socio-Economic Research, vol. 6(7), pages 1-11, July.
    13. 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.

    More about this item


    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


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:15080. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.