Driving Forces of Remittance Inflow in Bangladesh: An Empirical Study (original) (raw)
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Migration and Foreign inward remittances are vital and common phenomenon in the economy of Bangladesh. The role of remittances in the socioeconomic development is gradually being recognized by the policy-makers of the country. Foreign inward remittance is lessening Bangladesh's trade deficits, resulting surplus in current account balance. Foreign remittances also increase a country's international creditworthiness and lead to lower borrowing costs. If financial institutions can securitize remittance deposits they can increase their access to and participation in international capital markets, thus enhancing the home country's integration in such markets. This paper explores the impacts and present scenario of migration and remittances towards the economic development. The paper also focuses some policy measures for increasing the inward foreign remittances and their proactive employment so as to enhance their contribution to the development.
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Bangladesh witnessed a surge in remittances inflow since 2002, especially as measures had been taken to encourage remitters to send their money through official channels. The multi-faceted benefits generated from remittances include increasing the living standards of recipient households, easing national saving-investment and exports-imports gap, and the building up of foreign exchange reserves. Reaping continuous benefits from remittances depends on addressing two key issues, namely increasing number of remitters, particularly skilled and professionals and maintaining the sustainability of remittances inflow. Though the remittances inflow into Bangladesh is increasing and is proportionate to the growth in world remittance flows, continued increases are not guaranteed. This paper attempts to analyze the present performance of remittances inflows in Bangladesh as well as investigate the challenges in the acceleration of remittances inflows. The paper also suggests coherent policies that can facilitate smooth emigration, ensure sustainable remittance inflow and divert a significant share of received remittances into productive sectors aiming at achieving higher growth, generation of employment, and alleviation of poverty.
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Inflow of Remittances and its Impact on Economic Growth of Bangladesh
Australian Academy of Business and Economics Review (AABER), 2019
Workers' remittances (WRs) are the cash inflows in foreign exchange coming from abroad into their home country. It is a prime root of foreign exchange earnings and these large inflows of remittances have vast effects to the economy. Migration plays a critical role in the economy in two main ways: First, by shirinking unemployment and second, by supplying remittance inflows for the country. Among South Asia, Bangladesh is a lower-middle-income country. In spite of a number of problems, the country is moving forward over time. Its overseas employment consists of professional, skilled, semiskilled , and less-skilled labor forces. In every year, near about two million young people are added to the labor force (BBS, 2013). However, the country lacks the ability to create sufficient jobs to absorb them. The country's population increased from 71 million in 1976 to 161 million in 2018 while the total working population or labor forces (age group-20-54) augmented to 91.44 million in 2018 from 31.73 million in 1976 (World Bank, 2019). Figure 1 presents the increasing trends of population and labor force of Bangladesh. This huge number of workforce needs to be absorbed in employment to make certain their involvement in the economic advancement of the country as well as to improve their standard of living. Migration of a huge number of labor force results higher remittance inflows in the country. It is notable that inflow of remittances is increasing over the years in Bangladesh which plays a significant role in the advancement of the migrant families and the country as well. Thus, remittances turn into an essential aspect for the socioeconomic progress of Bangladesh. It has a significant role to maintain a favorable balance of
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International migration is considered to be an important livelihood strategy for the people of Bangladesh. This paper investigates natures and trends of migration and remittance flows of Bangladesh in the last years considering FY 2001-2002 to FY 2012-2013. This is an exploratory type of research based on secondary data generated from various reports of government and non-government organizations and of various publication of home and abroad. It is found that from FY2001-2002 to FY 2007-08 both the migration and remittance flows show an increasing trend but after this period it is showed a decreasing trend. The current research paper has identified various reasons behind this. Study also identifies that about 70 percent of total exports are in different countries of Middle East and most of the remittance also come from Middle East. It is also observed that t due to different reason, the opportunity of manpower export to Middle East region is reducing. Therefore, for increasing the reserve as well as boosting up economic development through remittance flow, government of Bangladesh should come forward to search new scopes of manpower export.