Do remittances and foreign aid augment the gross savings: Bangladesh, India and Philippines perspective?

Akter, Shirin

doi:10.1007/s12232-018-0305-z

Cited by 7 publications

(9 citation statements)

References 41 publications

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“…The first empirical work on the relationship between total energy consumption and remittances came from Akçay and Demirtaş ( 2015 ) who analyzed data from Morocco from 1975 to 2000, and found that remittance inflows and energy consumption were self-reinforcing. This work was followed by Das and McFarlane ( 2020 ), who examined the relationship between remittances and disaggregated non-renewable energy consumption in Bangladesh.…”

Section: Review Of the Existing Literaturementioning

confidence: 99%

“…Since the 1980s, scholars have recognized that remittance inflows and policies relating to them have an important role to play in achieving the macroeconomic goals of economic growth, external balance, full employment, and stable inflation for developing countries (e.g., Akter 2018;Chimhowu et al 2005;Orozco 2005;Glytsos 1993;Glytsos 2002;Russell 1986;Stahl and Arnold 1986;Stahl and Habib 1989). For Bangladesh, a survey of the literature reveals that many scholars have examined the impact of remittances on consumption and by extension economic growth.…”

Section: Macroeconomic Impacts Of Remittances In Bangladeshmentioning

confidence: 99%

“…Moreover, remittances could increase the energy consumption indirectly through increased economic activity, through the formation of human capital (Adams and Cuecuecha 2013 ), or through increased financial capital (Senbeta 2013 ). In fact, Akçay and Demirtaş ( 2015 ) found for Morocco that remittances increased energy consumption, because remittances increased income levels which increased demand for energy. A recent study by Das and McFarlane ( 2020 ) examined the relationship between remittances and the consumption of disaggregated non-renewable energy sources (for example, natural gas, coal, and petroleum) in Bangladesh.…”

Section: Introductionmentioning

confidence: 99%

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Empirical exploration of remittances and renewable energy consumption in Bangladesh

2021

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In recent years, a surge of remittances to Bangladesh has enabled rural households to adopt modern renewable energy sources. However, researchers have yet to examine any statistical association between remittances and renewable energy. In this study, we determined the causal relationships between per capita remittance inflows and renewable energy consumption in Bangladesh using annual data for the period 1980-2017. This is the first such study. This determination was made while controlling for changes in GDP, and employing causality and cointegration testing. We arrived at three key results. First, a unidirectional causality running from the level of remittances per capita to a level of renewable energy consumption was determined. Second, we observed a unique cointegrating relationship between the variables. Third, a short-run bidirectional causality between remittances per capita and renewable energy consumption was clarified. Important policy implications indicate that the government should create incentives for remittance-recipient households to invest remittance funds in modern renewable technologies such as solar home energy systems.

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Section: Review Of the Existing Literaturementioning

confidence: 99%

Section: Macroeconomic Impacts Of Remittances In Bangladeshmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Empirical exploration of remittances and renewable energy consumption in Bangladesh

2021

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“…An earlier study shows, workers' remittances can complement national savings to form a bigger pool of resources available for investment (Barai, 2012;Carling, 2004) and can potentially help increase the country's long term growth through higher rates of capital accumulation (Mundaca, 2009). As there is some evidence of the positive effect of remittances on gross savings for Bangladesh, government policies should focus on leveraging remittance flows to facilitate savings and investment for capital accumulation (Akter, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Remittances and households’ savings behaviour in Bangladesh

Salahuddin

Masud

Teng

2021

SBR

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Purpose The purpose of this study is to examine the impact of remittance inflow on households’ savings behaviour in Bangladesh. Remittances are considered as the countercyclical flow of income for its recipient economies. It surges the liquidity of the households receiving remittances, allows them to endure local economic shocks and facilitates them to practice productive activities. Remittances often form a big pool of resources for investment which complement the national savings and support the country’s growth through higher rates of capital accumulation. Therefore, if a significant portion of the remittance is used for savings it can lead to prominent economic growth in the long term. Design/methodology/approach Existing literature indicates remittance-receiving households have a greater propensity to use remittance income to meet basic consumption. However, based on the survey conducted by the Bangladesh Bureau of Statistics on remittances and household savings (SIR, 2016) and using the ordinary least square regression analysis method, to identify the connection between remittances and household’s saving (SIR, 2016) and using the ordinary least square regression analysis method, to identify the connection between remittances and household’s savings behaviour in Bangladesh. Findings The findings of this study represent remittances encourage households to pursue different kinds of savings in Bangladesh. Savings are made in the form of opening savings accounts, deposit pension scheme/fixed deposits/Bonds, insurance policies, also savings through non-governmental organizations, cooperative societies and savings at home. Other than remittances the demographic characteristics of the household head also influence the savings choices. Originality/value To enable the implementation of appropriate policies to boost savings, analysis from both perspectives; the household and the national level, requires strong vigilance and surveillance.

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“…It also mitigates growth volatility, especially in countries with high financial development status (Chami et al 2008 ; Ahamada and Coulibaly 2011 ). Many studies also observe the capacity of remittances in both physical and human capital accumulation, and poverty and inequality reduction, as it directly impacts income distribution (Imai et al 2014 ; Jouini 2015 ; Bang et al 2016 ; Akobeng 2016 ; Ahmed et al 2018 ; Akter 2018 ). The welfare gains are high when the internal distribution of remittances is skewed towards entrepreneurs (Bahadir et al 2018 ).…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic determinants of remittances to India

Jijin

Mishra

Nithin

2021

Econ Change Restruct

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Migration and remittances have always been an exciting arena of research for economists around the globe. Remittance flows have evolved as a significant economic variable over the past decade. In several developing countries, remittances exceed the other capital inflows and value of total exports. Thus, it is widely recognised as a potential funding source for economic development in emerging economies. The inflow of remittances to India has increased tremendously in the recent past making the country the highest recipient of remittances across the globe. Remittances are an essential component that contributes to narrowing the Current Account Deficit and has always been a stable constituent of the Balance of Payment. This paper is an attempt to explore the vital macroeconomic variables which determine the remittance flows to India. Notably, we enquire into the dominant motives of remittances in the Indian context. We employ an ARDL approach to cointegration to identify the macroeconomic determinants of remittances and find those crucial variables such as exchange rate, oil price, and domestic GDP substantially impact the flow of remittances. The results also indicate that the migrants are more vulnerable to the oil price shocks in host countries. The overall findings of our study are that (1) remittances are not countercyclical in the Indian context (2) remittances are subject to weak investment motive as opposed to the altruistic motive.

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Do remittances and foreign aid augment the gross savings: Bangladesh, India and Philippines perspective?

Cited by 7 publications

References 41 publications

Empirical exploration of remittances and renewable energy consumption in Bangladesh

Empirical exploration of remittances and renewable energy consumption in Bangladesh

Remittances and households’ savings behaviour in Bangladesh

Macroeconomic determinants of remittances to India

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