EconPapers    
Economics at your fingertips  
 

Nonlinear Effects of Remittances on Per Capita GDP Growth in Bangladesh

Gazi Hassan (gazi.hassan@gmail.com) and Shamim Shakur
Additional contact information
Shamim Shakur: School of Economics and Finance, Massey University, Palmerston North 4442, New Zealand

Economies, 2017, vol. 5, issue 3, 1-11

Abstract: This paper examines the impact of inward remittances flows on per capita gross domestic product (GDP) growth in Bangladesh during 1976–2012. We find that the growth effect of remittances is negative at first but becomes positive at a later stage, evidence of a non-linear relationship. Unproductive use of remittances was rampant in the beginning when they were received by migrant families, but better social and economic investments led to more productive utilization of remittances receipts at later periods. This suggests a U-shaped relationship between remittances and per capita GDP growth. Unlike what is suggested in the literature, that the effect of remittances is more pronounced in a less financially developed economy, our evidence does not show that the effect of remittances on per capita GDP growth in Bangladesh is conditional on the level of financial development.

Keywords: remittances; economic growth; Bangladesh; remittances utilization (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
https://www.mdpi.com/2227-7099/5/3/25/pdf (application/pdf)
https://www.mdpi.com/2227-7099/5/3/25/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:5:y:2017:i:3:p:25-:d:104888

Access Statistics for this article

Economies is currently edited by Ms. Adore Zhou

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager (indexing@mdpi.com).

 
Page updated 2025-02-12
Handle: RePEc:gam:jecomi:v:5:y:2017:i:3:p:25-:d:104888