CINXE.COM
Inflow of Remittances and its Impact on Economic Growth of Bangladesh | Australian Academy of Business and Economics Review
<!DOCTYPE html> <html lang="en-US" xml:lang="en-US"> <head> <meta charset="utf-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title> Inflow of Remittances and its Impact on Economic Growth of Bangladesh | Australian Academy of Business and Economics Review </title> <meta name="generator" content="Open Journal Systems 3.3.0.13"> <link rel="schema.DC" href="http://purl.org/dc/elements/1.1/" /> <meta name="DC.Creator.PersonalName" content="Farida Parveen"/> <meta name="DC.Creator.PersonalName" content="Mohammad Masuduzzaman1"/> <meta name="DC.Creator.PersonalName" content="Md. Syedul Islam"/> <meta name="DC.Creator.PersonalName" content="Saifa Islam Dipty"/> <meta name="DC.Date.created" scheme="ISO8601" content="2019-08-26"/> <meta name="DC.Date.dateSubmitted" scheme="ISO8601" content="2023-01-25"/> <meta name="DC.Date.issued" scheme="ISO8601" content="2023-01-25"/> <meta name="DC.Date.modified" scheme="ISO8601" content="2023-01-25"/> <meta name="DC.Description" xml:lang="en" content="In general, it is ruminated that workers’ remittance is one of a major source for external finance and economic growth for developing countries like Bangladesh. This study pinpoints the influence of workers’ remittances (WRs) on the economic growth of Bangladesh by analyzing time series data of 43 years from 1976 to 2018 drawn out from the World Bank database. Using ARDL, we have tried to investigate the relationship of gross domestic product (GDP) with remittances and some other variables such as gross capital formation (a proxy of capital stock) and employed labor force. The study finds that 1% increase of remittance earning induces to increase GDP by 0.37%. It can be concluded from the regression results that there exists a significant positive relationship between WRs and economic growth in Bangladesh. However, there are some fluctuations of remittance flow in Bangladesh in recent years. Hence, this study acclaims that Bangladesh should take suitable initiatives for keeping an increasing trend of remittances in the coming years and make pragmatic policies that inspire and stimulate the inflow of remittances through proper channel for economic growth and development. Keywords: Remittances; Economic Growth; Productivity; Panel Data Analysis; Bangladesh Australian Academy of Business and Economics Review, vol 5, issue 2, July 2019, pp 74-88"/> <meta name="DC.Format" scheme="IMT" content="application/pdf"/> <meta name="DC.Identifier" content="182"/> <meta name="DC.Identifier.pageNumber" content="74-88"/> <meta name="DC.Identifier.URI" content="https://journalshosting.com/aabljournals/index.php/aaber/article/view/182"/> <meta name="DC.Language" scheme="ISO639-1" content="en"/> <meta name="DC.Rights" content="Copyright (c) 2023 Farida Parveen, Mohammad Masuduzzaman1, Md. Syedul Islam, Saifa Islam Dipty"/> <meta name="DC.Rights" content="https://creativecommons.org/licenses/by/4.0"/> <meta name="DC.Source" content="Australian Academy of Business and Economics Review"/> <meta name="DC.Source.ISSN" content="2205-6726"/> <meta name="DC.Source.Issue" content="2"/> <meta name="DC.Source.Volume" content="5"/> <meta name="DC.Source.URI" content="https://journalshosting.com/aabljournals/index.php/aaber"/> <meta name="DC.Subject" xml:lang="en" content="Remittances"/> <meta name="DC.Subject" xml:lang="en" content="Economic Growth"/> <meta name="DC.Subject" xml:lang="en" content="Productivity"/> <meta name="DC.Subject" xml:lang="en" content="Panel Data Analysis"/> <meta name="DC.Subject" xml:lang="en" content="Bangladesh"/> <meta name="DC.Title" content="Inflow of Remittances and its Impact on Economic Growth of Bangladesh"/> <meta name="DC.Type" content="Text.Serial.Journal"/> <meta name="DC.Type.articleType" content="Articles"/> <meta name="gs_meta_revision" content="1.1"/> <meta name="citation_journal_title" content="Australian Academy of Business and Economics Review"/> <meta name="citation_journal_abbrev" content="AABER"/> <meta name="citation_issn" content="2205-6726"/> <meta name="citation_author" content="Farida Parveen"/> <meta name="citation_author" content="Mohammad Masuduzzaman1"/> <meta name="citation_author" content="Md. Syedul Islam"/> <meta name="citation_author" content="Saifa Islam Dipty"/> <meta name="citation_title" content="Inflow of Remittances and its Impact on Economic Growth of Bangladesh"/> <meta name="citation_language" content="en"/> <meta name="citation_date" content="2019/08/26"/> <meta name="citation_volume" content="5"/> <meta name="citation_issue" content="2"/> <meta name="citation_firstpage" content="74"/> <meta name="citation_lastpage" content="88"/> <meta name="citation_abstract_html_url" content="https://journalshosting.com/aabljournals/index.php/aaber/article/view/182"/> <meta name="citation_keywords" xml:lang="en" content="Remittances"/> <meta name="citation_keywords" xml:lang="en" content="Economic Growth"/> <meta name="citation_keywords" xml:lang="en" content="Productivity"/> <meta name="citation_keywords" xml:lang="en" content="Panel Data Analysis"/> <meta name="citation_keywords" xml:lang="en" content="Bangladesh"/> <meta name="citation_pdf_url" content="https://journalshosting.com/aabljournals/index.php/aaber/article/download/182/184"/> <link rel="stylesheet" href="https://journalshosting.com/aabljournals/index.php/aaber/$$$call$$$/page/page/css?name=bootstrapTheme-lumen" type="text/css" /><link rel="stylesheet" href="https://journalshosting.com/aabljournals/public/journals/2/styleSheet.css?d=2023-01-12+16%3A31%3A25" type="text/css" /> </head> <body class="pkp_page_article pkp_op_view has_site_logo"> <div class="pkp_structure_page"> <nav id="accessibility-nav" class="sr-only" role="navigation" aria-label="Quick jump to page content"> <ul> <li><a href="#main-navigation">Main Navigation</a></li> <li><a href="#main-content">Main Content</a></li> <li><a href="#sidebar">Sidebar</a></li> </ul> </nav> <header class="navbar navbar-default" id="headerNavigationContainer" role="banner"> <div class="container-fluid"> <div class="row"> <nav aria-label="User Navigation"> <ul id="navigationUser" class="nav nav-pills tab-list pull-right"> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/user/register"> Register </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/login"> Login </a> </li> </ul> </nav> </div><!-- .row --> </div><!-- .container-fluid --> <div class="container-fluid"> <div class="navbar-header"> <button type="button" class="navbar-toggle collapsed" data-toggle="collapse" data-target="#nav-menu" aria-expanded="false" aria-controls="nav-menu"> <span class="sr-only">Toggle navigation</span> <span class="icon-bar"></span> <span class="icon-bar"></span> <span class="icon-bar"></span> </button> <div class="site-name"> <a href=" https://journalshosting.com/aabljournals/index.php/aaber/index " class="navbar-brand navbar-brand-logo"> <img src="https://journalshosting.com/aabljournals/public/journals/2/pageHeaderLogoImage_en_US.png" alt="AABER "> </a> </div> </div> <nav id="nav-menu" class="navbar-collapse collapse" aria-label="Site Navigation"> <ul id="main-navigation" class="nav navbar-nav"> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber"> HOME </a> </li> <li class=" dropdown"> <a href="https://journalshosting.com/aabljournals/index.php/aaber/about" class="dropdown-toggle" data-toggle="dropdown" role="button" aria-haspopup="true" aria-expanded="false"> ABOUT <span class="caret"></span> </a> <ul class="dropdown-menu "> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/about"> About the Journal </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/aims-and-scope"> Aims and Scope </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/about/editorialTeam"> Editorial Team </a> </li> </ul> </li> <li class=" dropdown"> <a href="https://journalshosting.com/aabljournals/index.php/aaber/volumes-and-issues" class="dropdown-toggle" data-toggle="dropdown" role="button" aria-haspopup="true" aria-expanded="false"> VOLUMES AND ISSUES <span class="caret"></span> </a> <ul class="dropdown-menu "> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/issue/current"> Online First </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/issue/current"> Current </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/issue/archive"> Archives </a> </li> </ul> </li> <li class=" dropdown"> <a href="https://journalshosting.com/aabljournals/index.php/aaber/author-resources" class="dropdown-toggle" data-toggle="dropdown" role="button" aria-haspopup="true" aria-expanded="false"> AUTHOR RESOURCES <span class="caret"></span> </a> <ul class="dropdown-menu "> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/author-gudelines"> Author Gudelines </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/about/submissions"> Submissions </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/review-process"> Peer Review Process </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/copyright-policy"> Copyright Policy </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/open-access-policy"> Open Access Policy </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/about/privacy"> Privacy Statement </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/announcement"> Announcements </a> </li> <li class=""> <a href="https://journalshosting.com/aabljournals/index.php/aaber/contact"> Contact </a> </li> </ul> </li> </ul> <div class="pull-md-right"> <form class="navbar-form navbar-left" role="search" method="post" action="https://journalshosting.com/aabljournals/index.php/aaber/search/search"> <div class="form-group"> <input class="form-control" name="query" value="" type="search" aria-label="Search Query" placeholder=""> </div> <button type="submit" class="btn btn-default">Search</button> </form> </div> </nav> </div><!-- .pkp_head_wrapper --> </header><!-- .pkp_structure_head --> <div class="pkp_structure_content container"> <main class="pkp_structure_main col-xs-12 col-sm-10 col-md-8" role="main"> <div class="page page_article"> <nav class="cmp_breadcrumbs" role="navigation" aria-label="You are here:"> <ol class="breadcrumb"> <li> <a href="https://journalshosting.com/aabljournals/index.php/aaber/index"> Home </a> </li> <li> <a href="https://journalshosting.com/aabljournals/index.php/aaber/issue/archive"> Archives </a> </li> <li> <a href="https://journalshosting.com/aabljournals/index.php/aaber/issue/view/31"> Vol. 5 No. 2 (2019) </a> </li> <li class="active"> Articles </li> </ol> </nav> <article class="article-details"> <header> <h1 class="page-header"> Inflow of Remittances and its Impact on Economic Growth of Bangladesh </h1> </header> <div class="row"> <section class="article-sidebar col-md-4"> <h2 class="sr-only">Article Sidebar</h2> <div class="download"> <a class="galley-link btn btn-primary pdf" role="button" href="https://journalshosting.com/aabljournals/index.php/aaber/article/view/182/184"> PDF </a> </div> <div class="list-group"> <div class="list-group-item date-published"> <strong>Published:</strong> Aug 26, 2019 </div> <div class="list-group-item keywords"> <strong> Keywords:</strong> <div class=""> <span class="value"> Remittances Economic Growth Productivity Panel Data Analysis Bangladesh </span> </div> </div> </div> </section><!-- .article-sidebar --> <div class="col-md-8"> <section class="article-main"> <h2 class="sr-only">Main Article Content</h2> <div class="authors"> <div class="author"> <strong>Farida Parveen</strong> </div> <div class="author"> <strong>Mohammad Masuduzzaman1</strong> </div> <div class="author"> <strong>Md. Syedul Islam</strong> </div> <div class="author"> <strong>Saifa Islam Dipty</strong> </div> </div> <div class="article-summary" id="summary"> <h2>Abstract</h2> <div class="article-abstract"> <p>In general, it is ruminated that workers’ remittance is one of a major source for external finance and economic growth for developing countries like Bangladesh. This study pinpoints the influence of workers’ remittances (WRs) on the economic growth of Bangladesh by analyzing time series data of 43 years from 1976 to 2018 drawn out from the World Bank database. Using ARDL, we have tried to investigate the relationship of gross domestic product (GDP) with remittances and some other variables such as gross capital formation (a proxy of capital stock) and employed labor force. The study finds that 1% increase of remittance earning induces to increase GDP by 0.37%. It can be concluded from the regression results that there exists a significant positive relationship between WRs and economic growth in Bangladesh. However, there are some fluctuations of remittance flow in Bangladesh in recent years. Hence, this study acclaims that Bangladesh should take suitable initiatives for keeping an increasing trend of remittances in the coming years and make pragmatic policies that inspire and stimulate the inflow of remittances through proper channel for economic growth and development.</p><br /> <p><strong>Keywords: </strong>Remittances; Economic Growth; Productivity; Panel Data Analysis; Bangladesh</p><br /> <p><strong>Australian Academy of Business and Economics Review, vol 5, issue 2, July 2019, pp 74-88</strong></p> </div> </div> </section><!-- .article-main --> <section class="article-more-details"> <h2 class="sr-only">Article Details</h2> <div class="panel panel-default issue"> <div class="panel-heading"> Issue </div> <div class="panel-body"> <a class="title" href="https://journalshosting.com/aabljournals/index.php/aaber/issue/view/31"> Vol. 5 No. 2 (2019) </a> </div> </div> <div class="panel panel-default section"> <div class="panel-heading"> Section </div> <div class="panel-body"> Articles </div> </div> <div class="panel panel-default copyright"> <div class="panel-body"> <a rel="license" href="https://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" src="//i.creativecommons.org/l/by/4.0/88x31.png" /></a><p>This work is licensed under a <a rel="license" href="https://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> </div> </div> </section><!-- .article-details --> </div><!-- .col-md-8 --> </div><!-- .row --> </article> </div><!-- .page --> </main> <aside id="sidebar" class="pkp_structure_sidebar left col-xs-12 col-sm-2 col-md-4" role="complementary" aria-label="Sidebar"> <div class="pkp_block block_custom" id="customblock-aaber-submission-site"> <h2 class="title">AABER Submission Site</h2> <div class="content"> <p>Please make a submission by using the "<strong>MAKE A SUBMISSION</strong>" link below. <u>You may not receive any notification of your submission in your email</u>. However, you can view and track the 'accept/reject' status of your submission through this submission system. The system will send you the 'accept/reject' notification in your email anyway. <strong>Please check your spam folder</strong> as the system generated email with 'accept/reject' notification may land in your spam folder. </p> </div> </div> <div class="pkp_block block_make_submission"> <h2 class="pkp_screen_reader"> Make a Submission </h2> <div class="content"> <a class="block_make_submission_link" href="https://journalshosting.com/aabljournals/index.php/aaber/about/submissions"> Make a Submission </a> </div> </div> <div class="pkp_block block_custom" id="customblock-editorial-team"> <h2 class="title">Editorial Team</h2> <div class="content"> <p><strong>Editor-in-Chief</strong></p> <ul> <li>Professor Francisco Coronel, Hampton University, Virginia, USA</li> </ul> <p><strong>Editorial Board Members</strong></p> <ul> <li>Dr. Wan Norhayate Bt. Wan Daud, Universiti Sultan Zainal Abidin (UniSZA), Malaysia</li> <li>Dr Kasim Mansur, Universiti Malaysia Sabah, Malaysia</li> <li>Dr S. Fiona Chan, Massey University, New Zealand</li> <li>Dr Fiona Edgar, University of Otago, New Zealand</li> <li>Dr Nighat Ansari, University of the Punjab, Pakistan</li> <li>Dr Nirmala Dorasamy, Durban University of Technology, South Africa</li> <li>Dr William W. Kirkley, Massey University, New Zealand</li> <li>Dr Ivy Chia, Lecturer of Business, SIM University, Singapore</li> <li>Dr James Henry, University of Otago, NewZaland</li> <li>Dr Yuan Yuan Hu, Massey University, New Zealand</li> </ul> <p><strong>Editorial Advisory Board</strong></p> <ul> <li>Dr. Andrew Banasiewicz, Merrimack College, USA</li> <li>Dr. Mahadzirah Mohamad, <em>Professor of Marketing, </em>University of Sultan Zainal Abidin (UniSZA), Malaysia</li> <li>Professor Moha Abdullah, International Islamic University of Malaysia, Kuala Lumpur, Malaysia</li> <li>Dr Xiaoming Li, Associate Professor of Economics, Massey University, New Zealand</li> <li>Professor Dr Wei-Bin Zhang, Professor of Economics, College of Asia Pacific Management, Ritsumeikan Asia Pacific University, Japan</li> </ul> </div> </div> <div class="pkp_block block_information"> <h2 class="title">Information</h2> <div class="content"> <ul> <li> <a href="https://journalshosting.com/aabljournals/index.php/aaber/information/readers"> For Readers </a> </li> <li> <a href="https://journalshosting.com/aabljournals/index.php/aaber/information/authors"> For Authors </a> </li> <li> <a href="https://journalshosting.com/aabljournals/index.php/aaber/information/librarians"> For Librarians </a> </li> </ul> </div> </div> <div class="pkp_block block_custom" id="customblock-contact-us"> <h2 class="title">Contact Us</h2> <div class="content"> <p>We have a zero tolerance on junk/spam emails. To avoid any spam email, we don't publicly disclose our email address on this site. Please visit the journal hosting support page at <strong><a href="https://journalshosting.com/main/" target="_blank" rel="noopener">https://journalshosting.com/main/</a></strong> and fill the '<strong>Get in Touch</strong>' form at the end of the page. We will get back to you as soon as possible.</p> </div> </div> </aside><!-- pkp_sidebar.left --> </div><!-- pkp_structure_content --> <footer class="footer" role="contentinfo"> <div class="container"> <div class="row"> <div class="col-md-10"> <p><strong>Australian Academy of Business and Economics Review.</strong></p> <p>This website is created and maintained by '<strong>Creative Web', Tampa, FL, USA</strong>. All contents of this website are the intellectual property of '<strong>Creative Web' </strong>and are reserved by that web designer/developer. No content of this website can be further used without a permission. If you have any questions, please don't hesitate to contact us. </p> </div> <div class="col-md-2" role="complementary"> <a href="https://journalshosting.com/aabljournals/index.php/aaber/about/aboutThisPublishingSystem"> <img class="img-responsive" alt="More information about the publishing system, Platform and Workflow by OJS/PKP." src="https://journalshosting.com/aabljournals/templates/images/ojs_brand.png"> </a> </div> </div> <!-- .row --> </div><!-- .container --> </footer> </div><!-- pkp_structure_page --> <script src="https://journalshosting.com/aabljournals/lib/pkp/lib/vendor/components/jquery/jquery.min.js?v=3.3.0.13" type="text/javascript"></script><script src="https://journalshosting.com/aabljournals/lib/pkp/lib/vendor/components/jqueryui/jquery-ui.min.js?v=3.3.0.13" type="text/javascript"></script><script src="https://journalshosting.com/aabljournals/lib/pkp/js/lib/jquery/plugins/jquery.tag-it.js?v=3.3.0.13" type="text/javascript"></script><script src="https://journalshosting.com/aabljournals/plugins/themes/bootstrap3/bootstrap/js/bootstrap.min.js?v=3.3.0.13" type="text/javascript"></script> </body> </html>