Remittances flow and financial development in Bangladesh

Mamta Chowdhury ()

Economic Modelling, 2011, vol. 28, issue 6, 2600-2608

Abstract: Workers' remittance is a major source of foreign exchange earnings and plays an important role in the economy of Bangladesh. It accounts for 12% of GDP in 2010. This paper examines with annual data for 1971–2008, whether the flow of remittances is contributing positively to the development of the financial system of the country. Our results suggest that remittances have a significant positive effect on financial development. However, financial sector's development is neutral in its effect on the inflow of remittances.

Keywords: Remittances; Financial development; Bangladesh; Cointegration; VECM; PcGETs; Endogeniety test (search for similar items in EconPapers)
JEL-codes: F24 F41 F43 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (70)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:6:p:2600-2608

DOI: 10.1016/j.econmod.2011.07.013

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