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Microeconomic Impact of Remittances on Household Welfare: Evidences from Bangladesh

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  • Wadood, Syed Naimul
  • Hossain, Md. Amzad

Abstract

This paper investigates the impact of both international and domestic remittances and migration on household welfare in Bangladesh. We employ a number of variables such as different types of poverty measures, household consumption expenditure, expenditures on health and education etc. to define household welfare. We use the Household Income and Expenditure Survey 2010 to estimate the impact of remittances on household welfare. To address the issue of self-selection, we have used the Propensity Score Matching (PSM) technique. The results reveal that although both internal and external remittances have significant impact on reducing poverty and increasing consumption expenditure, the degree of impact is much higher for external remittances compared to internal remittances. However we find no impact of remittance on household expenditure on education and healthcare.

Suggested Citation

  • Wadood, Syed Naimul & Hossain, Md. Amzad, 2016. "Microeconomic Impact of Remittances on Household Welfare: Evidences from Bangladesh," MPRA Paper 76956, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76956
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    Cited by:

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    2. Saghir Pervaiz GHAURI & Rizwan Raheem AHMED & Jolita VVEINHARDT & Dalia STREIMIKIENE & Khalid Sarwar QURESHI, 2019. "The Effects of Remittances on Inflation (CPI and WPI) and Exchange Rate: A Case of Pakistan," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 146-165, June.
    3. Paresh Kumar Sarma & Mohammad Jahangir Alam & Ismat Ara Begum, 2023. "International remittances’ impact on household welfare and food security in Bangladesh: evidence from cross-sectional data," SN Business & Economics, Springer, vol. 3(1), pages 1-17, January.
    4. Satoshi Shimizutani & Eiji Yamada, 2021. "Resilience against the pandemic: The impact of COVID-19 on migration and household welfare in Tajikistan," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    5. Syed Naimul, Wadood & Nayeema Nusrat, Choudhury & Abul Kalam, Azad, 2023. "Does migration theory explain international migration from Bangladesh? a primer review," MPRA Paper 116611, University Library of Munich, Germany.
    6. 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.
    7. Kashif Imran & Evelyn S. Devadason & Cheong Kee Cheok, 2019. "Developmental Impacts of Remittances on Migrant-Sending Households: Micro-Level Evidence from Punjab, Pakistan," Journal of South Asian Development, , vol. 14(3), pages 338-366, December.

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    More about this item

    Keywords

    remittances; migration; Bangladesh; propensity score matching;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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