Remittances and Asset Accumulation in Bangladesh: A Study Using Generalised Propensity Score

Abstract

Drawing on a sample of households in Bangladesh, we utilise the generalised propensity score method to investigate the impact of internal and international remittances on households' net assets. The analysis suggests an inverted U-shaped relationship between the amount of internal remittances and the net assets of households. The effect of international remittances on net assets is similarly inverted U-shaped. The paper also indicates not only the source but also the size of remittances effects of the utilisation of remittances for asset accumulation.Countries marked by bold and italics are Asian countries. Source: Data from World Bank (2018). M. Chowdhury and D. RadicicThe GPS method has close association with the PSM technique developed by Rosenbaum and Rubin (1983). The general idea of PSM is that in field data or observational studies, 478 M. Chowdhury and D. Radicic