Driving Forces of Remittance Inflow in Bangladesh: An Empirical Study

Islam, Mohammed Saiful; Nasrin, Shamima

doi:10.5539/ijef.v7n6p126

Cited by 9 publications

(12 citation statements)

References 8 publications

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“…The standard approach to check the stationary of a time series is unit root test. Among the various tests, the Augmented Dickey-Fuller (ADF) test is used widely(Adenutsi, 2010), (Islam & Nasrin, 2015). Augmented Dickey-Fuller (ADF) unit root test has been used to check whether the variables are stationary or not.…”

Section: The Augmented Dickey-fuller (Adf) Unit Root Testmentioning

confidence: 99%

WITHDRAWN: Investigating Okun’s Law in SAARC Countries: An ARDL Approach

Hanif

Ahmed

Acet

et al. 2020

Preprint

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Purpose: The aim of this paper is to test the applicability of Okun’s law in SAARC (South Asian Association for Regional Cooperation) counties. It also intends to find the long-run association between unemployment rate and growth rate and investigate the impact of growth rate on unemployment in the South Asian Region.Design/methodology/approach: The study uses annual time series data for eight SAARC countries, from 1991 to 2015. To meet the objectives of the research, the graphical illustration of trend with descriptive statistics are followed by econometric analysis. Based on the stationarity of the variables, an autoregressive distributive lag (ARDL) model has been estimated to test the long-run relationship between unemployment and growth.Findings: The results indicate that per capita GDP negatively influences the unemployment rate in the long run only in three member countries of SAARC, namely- Afghanistan, India and Sri Lanka and in the South Asian Region in aggregate. This paper also finds a negative relationship between the growth rate and unemployment rate in Bangladesh, but this association is not statistically significant. The study doesn’t find any negative relationship between the two variables in Bhutan, Maldives, Nepal and Pakistan. The study discovers the validity of Okun’s law, but the attained Okun coefficient is less than that of the actual Okun coefficient, documented by Arthur Okun. Another substantial evidence is that the significance of the connection between the growth rate and unemployment rate varies among the SAARC countries.Research limitations: The main limitation of this paper is the unavailability of data for Afghanistan compared to other SAARC countries. Originality/value: This paper is unique as it tests the validity of Okun’s law in every member country of SAARC and as a region of South Asia. To date, no such study like this has been found in the body of literature which finds long-run relationship in all SAARC countries.JEL Classification: E24, J64, O11, O40.

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Section: The Augmented Dickey-fuller (Adf) Unit Root Testmentioning

confidence: 99%

WITHDRAWN: Investigating Okun’s Law in SAARC Countries: An ARDL Approach

Hanif

Ahmed

Acet

et al. 2020

Preprint

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“…Because of the increase in crude oil price, major host countries need more labor for gearing up the development activities which are financed by the surplus oil revenues. The finding supports (Asatryan et al, 2017;Islam & Nasrin, 2015;Naufal & Termos, 2009;Umair & Waheed, 2017).…”

Section: Analysis and Findingssupporting

confidence: 71%

“…Naufal and Termos (2009) explored that middle-eastern countries' major revenues depend on oil business and any change in the crude oil price will affect in the remittance outflows where oil price elasticity to remittances is 40. Islam and Nasrin (2015) analyzed the driving forces of remittance inflows in Bangladesh by considering the period of 1977-2011. They found that GDP of host country, GDP of home country, exchange rate, petroleum price, and skill of labor have significant impact on remittance inflow in Bangladesh.…”

Section: Oil Pricementioning

confidence: 99%

Economic and Noneconomic Forces on Remittance Receiving: A Panel Analysis of Top Remittance Sending Countries towards Bangladesh

Alam

Khan²

2021

The Economics and Finance Letters

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The purpose of the paper is to investigate the impacts of economic and non-economic factors on the remittance receiving of Bangladesh. The study focuses on quantitative analysis of unbalanced panel data of 8 countries on remittance receiving of Bangladesh for the period of 1981-2019 by employing fixed effects model and random effects model. The results show that crude oil price, domestic credit to private sector of host country, and global financial crisis of 2008-10 have significant positive impact on remittance receiving of Bangladesh. GDP per capita of home country has significant negative impact which is an evidence of altruistic motive of migrant workers to remit more money. The impact of terrorist attacks on September 11, 2001 is found significantly positive as it resulted into strict change in monetary regulation by spreading more money from informal channel to formal channel. The political unrest in Bangladesh during 2007-08 has insignificant positive impact what means the non-democratic and army backed 1/11 government did not help to grow the remittance receiving. Inflation rate of host country has insignificant positive impact and FDI to GDP of host country has insignificant negative impact.Contribution/Originality: This paper documents the altruistic motive of migrant workers to send more remittances. This is the first study which has investigated 1/11 government effect on remittance receiving of Bangladesh. This paper adds value to the remittance related literature views. The findings can help to modify polices to increase remittance receiving. INTRODUCTIONIncome received from the migrant workers of many developing countries has become one of the largest sources of external financing and capital accumulation for gearing up the economic development, reducing poverty and increasing foreign exchange reserve (Abduvaliev & Bustillo, 2019). Bangladesh is a developing market economy and currently it's 41 st largest economy in the world with an estimation of securing 24 th position by 2033 (The Daily Star, 2019). Bangladesh surprised the world by securing top position through achieving 188% GDP growth whereas China achieved 177%, India achieved 117%, and Malaysia achieved 78% in world's GDP growth list in the last 10 years on the basis of current price method as per Spectator Index-2019(Dhaka Tribune, 2019.Remittance receiving of Bangladesh has a big contribution for such surprising economic growth. Bangladesh is in the 3 rd position in Asia and 11 th in the world in terms of remittance recipient of the world (The Daily Star, 2019).

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“…For instance, economic growth leads to skilled labor through education. And the skilled labor force, if migrate, can send more remittances than unskilled labor (Islam & Nasrin, 2015). Identifying the direction of causality is important for policy intervention for economic growth and remittance.…”

Section: Panel Causality Testsmentioning

confidence: 99%

Remittances and Economic Growth Tie in Selected South Asian Countries: A Panel Data Analysis

Uddin¹,

Uddin²,

Uddin³

et al. 2019

IJFR

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Remittances are regarded one of the foremost financial resources globally. Over the past century, in the developing economy, there is a heated debate on the sources of economic growth. The current paper attempts to analyze how economic growth is being impacted by remittance in five selected South Asian countries between the period 1975 and 2017. Estimated results from panel-data estimation techniques exhibit a positive relation between economic growth and remittance in these countries. The results from Granger-causality tests suggest that remittance plays a catalyst role to bring economic growth but economic growth doesn’t play any role to bring remittance while Dumitrescu Hurlin Causality tests found a bi-directional relationship. Important finding of the study is that remittance boost economic growth in South Asian region.

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Driving Forces of Remittance Inflow in Bangladesh: An Empirical Study

Cited by 9 publications

References 8 publications

WITHDRAWN: Investigating Okun’s Law in SAARC Countries: An ARDL Approach

WITHDRAWN: Investigating Okun’s Law in SAARC Countries: An ARDL Approach

Economic and Noneconomic Forces on Remittance Receiving: A Panel Analysis of Top Remittance Sending Countries towards Bangladesh

Remittances and Economic Growth Tie in Selected South Asian Countries: A Panel Data Analysis

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