Did Remittance Inflow in Bangladesh Follow the Gravity Path during COVID-19?

Gour Goswami (), Munim Kumar Barai (), Mahnaz Aftabi Atique and Mostafizur Rahman
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Munim Kumar Barai: Graduate School of Management, Ritsumeikan Asia Pacific University, Beppu 874-8577, Japan
Mahnaz Aftabi Atique: Department of Economics, School of Business and Economics, North South University, Dhaka 1229, Bangladesh
Mostafizur Rahman: Department of Economics, School of Business and Economics, North South University, Dhaka 1229, Bangladesh

Economies, 2023, vol. 11, issue 11, 1-19

Abstract: Remittances are one of the major driving forces of economic growth in Bangladesh. The paper’s main objective is to empirically investigate the effect of COVID-19 on the remittance inflow to Bangladesh using a gravity model framework. We have employed monthly data of remittance inflow to Bangladesh from January 2018 to September 2022 with its top twelve partners, namely the Kingdom of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Libya, the United Kingdom, Italy, Malaysia, Singapore, and Japan. Using the gravity equation, we tapped the COVID-19 dummy as the critical variable of our interest, along with COVID transmission, mortality, and vaccination data at home and abroad. Using Poisson pseudo-maximum likelihood (PPML), fixed-effect (FE), and random-effect (RE) estimations, we find that during the COVID-19 pandemic, remittance inflow to Bangladesh increased significantly after controlling for other Gravity variables.

Keywords: COVID-19; gravity model; remittance inflow; Bangladesh; panel data; South Asia (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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