Growth Effects of Remittances in Bangladesh

Is there a U‐shaped Relationship

Bibliographic Data

ID9952449
AuthorsGazi Hassan (0000-0003-3861-8191, University of Waikato, corresponding author), Gazi M Hassan (University of Waikato New Zealand), Mamta Banu Chowdhury (0000-0003-3866-6628, Western Sydney University), Mamta Chowdhury (University of Western Sydney Australia), Mohammed Salim Bhuyan (University of Wollongong), Mohammed Bhuyan (University of Wollongong Australia)
Year2016
Volume54
Issue5
Pages105-121
Publication date2016-02-23
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueInternational Migration (JOURNAL)
Journal identifiersISSN: 0020-7985 • E-ISSN: 1468-2435
PublisherWiley (PUBLISHER • GB)
DOI10.1111/imig.12242
OpenAlexW2285591654
LanguageEN
Citations received8
References cited51

This article shows that the effect of remittances on economic growth involves a U‐shaped pattern, which is negative initially but later becomes positive. The analysis differs significantly from earlier studies in that it examines important methodological issues on the specification and estimation of the long‐run growth effects of remittances by estimating their impact on total factor productivity ( TFP ) rather than on the growth rate of GDP , using time series data from Bangladesh. The use of single‐equation cointegration methods shows that remittances’ effect on long‐run growth in Bangladesh is negative and falling until the remittances‐to‐ GDP ratio is roughly eight per cent. The benefits of remittances receipts outweigh their costs and their net effects start to become positive when the ratio exceeds 14 per cent

Cointegration · Demographic economics · Econometrics · Economics · Estimation · Falling (accident · Macroeconomics · Monetary economics · Productivity · Real gross domestic product · Total factor productivity · Fiscal Policy and Economic Growth · International Development and Aid · Migration and Labor Dynamics

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