Does Remittance Promote Socio-Economic Development? Evidence from Bangladesh

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Authors

  • Md. Yousuf
     Deputy Director, Bangladesh Bank ,BD
  • Raju Ahmed
     Joint Director, Bangladesh Bank ,BD
  • Shah Md. Sumon
     Joint Director, Bangladesh Bank ,BD

DOI:

https://doi.org/10.18311/sdmimd/2024/33284

Keywords:

Human Development Index, Remittance, VECM

Abstract

Bangladesh is promoting remittance inflows as it has become one of the main sources of foreign exchange. This paper investigates how remittances promote socio-economic development in Bangladesh by using the time series data for the period of 1990-2020. Unit root test shows that all variables are stationary at first difference. That is, integrated of order one I(1). The long-run relationship is ensured by the Johansen Cointegration approach. Finally, we use Vector Error Correction Model (VECM) to estimate the impact. The results confirm that remittances and HDI in Bangladesh are interrelated long-run. The long-run coefficient indicates that an increase in remittance inflow will promote socio-economic development measured by HDI. For the disaggregate Level, we examine the impact of remittances on per capita GDP, life expectancy, and years of schooling. In the long run, remittances promote per capita GDP, life expectancy, and years of schooling.

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Published

2024-03-28

How to Cite

Yousuf, M., Ahmed, R., & Sumon, S. M. (2024). Does Remittance Promote Socio-Economic Development? Evidence from Bangladesh. SDMIMD Journal of Management, 15(1), 79–92. https://doi.org/10.18311/sdmimd/2024/33284

Issue

Volume 15, Issue 1, March 2024

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Articles

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Copyright (c) 2024 Md. Yousuf, Raju Ahmed, Shah Md. Sumon

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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