Impact of Remittance on Economic Growth in Bangladesh

Sabiha Binta Hasan, Roksana Akhter, Al Amin Al Abbasi and Subrata Saha
Additional contact information
Sabiha Binta Hasan: Mawlana Bhashani Science and Technology University
Roksana Akhter: Mawlana Bhashani Science and Technology University
Al Amin Al Abbasi: Mawlana Bhashani Science and Technology University
Subrata Saha: Mawlana Bhashani Science and Technology University

American Journal of Trade and Policy, 2019, vol. 6, issue 1, 41-48

Abstract: In Bangladesh, remittance is one of the most important economic variables in recent times as it impacts economic growth, helps balance payments, increases foreign exchange reserves, enhances national savings, and increases the velocity of money. Remittance has contributed around 35% of export earnings for about two decades. Moreover, it is more significant than foreign aid and thus helps in lessening dependence on foreign aid remittance gets momentum in recent times in Bangladesh and is the second largest sector of foreign currency earnings after the garment; sector. If the cost of imported raw materials is deducted from the foreign currency earnings of the garments sector, than it becomes the largest sector of foreign currency earnings. Remittance earnings is increasing daily but at a lower rate than the increase in emigration from Bangladesh due to the increasing share of unskilled or semi-skilled laborers than the professionals in international migration. The percentage of remittance in GNI (Gross National Income) is increasing daily. Remittance affects almost all the macroeconomic indicators of a country positively. Though there are also opposing sides to remittance earnings, e.g., brain drain, its overall contribution to Bangladesh's economy is very effective.

Keywords: Remittances; Economic growth; GDP; Bangladesh (search for similar items in EconPapers)
JEL-codes: F24 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://abc.us.org/ojs/index.php/ajtp/article/view/346/766 Full text (application/pdf)

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:ris:ajotap:0041

Access Statistics for this article

American Journal of Trade and Policy is currently edited by Charles A. Rarick

More articles in American Journal of Trade and Policy from Asian Business Consortium Asian Business Consortium, 10-B-6, Darussalam Tower, Mirpur Road, Dhaka-1216, Bangladesh.
Bibliographic data for series maintained by Alim Al Ayub Ahmed ( this e-mail address is bad, please contact ).