Relationship between Remittances and Economic Growth in Bangladesh: An Econometric Study

14 Pages Posted: 8 Jan 2014

See all articles by Kanchan Datta

Kanchan Datta

University of North Bengal

Bimal Sarkar

Bangabasi Morning College

Date Written: January 7, 2014

Abstract

In Bangladesh, remittances have increased sharply over the last 20 years and amount since 2008 to over 10 percent of GDP. While remittances can foster growth and development as well as prevent balance of payment crises, they can also have a negative impact on growth if used for conspicuous consumption or unproductively. Recipients of remittance can become highly dependent on the easy money, causing them to reduce their efforts and or their participation in the labor market, which would affect economic growth negatively. In this paper an attempt is made to analyze the impact of remittances on economic growth in the Bangladeshi economy, using time series econometric techniques, specifically, the auto regressive distributed lag (ARDL) framework.

Keywords: remittances, growth, Bangladesh, ARDL, ECM

JEL Classification: F24, O15, O53

Suggested Citation

Datta, Kanchan and Sarkar, Bimal, Relationship between Remittances and Economic Growth in Bangladesh: An Econometric Study (January 7, 2014). Available at SSRN: https://ssrn.com/abstract=2375991 or http://dx.doi.org/10.2139/ssrn.2375991

Kanchan Datta (Contact Author)

University of North Bengal ( email )

Siliguri
West Bengal
India

Bimal Sarkar

Bangabasi Morning College ( email )

19, Rajkumar Chakraborty Sarani
Scott Lane
Kolkata, West Bengal 700009
India

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