Migrant Remittance Inflow and Industrialization in Africa: What Role Does Financial Development Play?

Adeoye, Babatunde Wasiu; Nwokolo, Chinenye Ifeoma; Igboanugo, Nnenna Ifunanyachukwu

doi:10.1007/978-3-030-46482-0_11

Cited by 5 publications

(1 citation statement)

References 25 publications

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“…Studies report remittances have a positive impact on domestic savings and they can significantly influence a household's propensity to save (Nkoobe, 2019;Maruf and Muzib, 2017;Iheke and Aniocha, 2017). It can supplement domestic investment funds to enhance the capacity of the economy to grow (Adeoye, 2020;Joshi et al, 2019;Hafeez et al, 2017). Households receiving international remittances have comparatively higher chances of savings compared to households receiving internal remittances (Magsino, 2019).…”

Section: Introductionmentioning

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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