Hasan, Mohammad Monirul (2008): The macroeconomic determinants of remittances in Bangladesh.
Download (52kB) | Preview
This paper examines the macroeconomic determinants of workers’ remittances in Bangladesh. Various regressions in the paper find that the macroeconomic variables such as inflation, interest rate, exchange rate of Bangladesh and GDP of the five remittance sending countries have significant impact on remittance. In the analysis it is found that if the domestic interest rate goes up by 1%, on average, then the remittance will increase by 1.94%. Therefore, remittance in Bangladesh is very responsive to changes in the domestic interest rate. Again, if the GDP of the rest of the five countries increases by 1%, then remittance will increase by 3.06 %
|Item Type:||MPRA Paper|
|Original Title:||The macroeconomic determinants of remittances in Bangladesh|
|Keywords:||Remittance; inflation; interest rate; exchange rate|
|Subjects:||E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Interest Rates: Determination, Term Structure, and Effects
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P24 - National Income, Product, and Expenditure; Money; Inflation
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances
|Depositing User:||Monirul Hasan|
|Date Deposited:||29. Dec 2010 20:34|
|Last Modified:||12. Feb 2013 18:25|
1. Elbadawi, I. A. and Rocha, R., 1992, Determinants of Expatriate Workers’ Remittances in North Africa and Europe”, World Bank Working Paper Series 1038.
2. El-Sakka, M. and MaNabb, R., 1999, The Macroeconomic Determinants of Migrant Remittances, World Development, 27, pp. 1493-1502.
3. Faini, R., 1994, Workers Remittances and the Real Exchange Rate: A Quantitative Framework, Journal of Population Economics, 7, pp. 235-245.
4. Glytsos, N., 1997, Remitting Behaviour of “Temporary” and “Permanent” Migrants: The Case of Greeks in Germany and Australia, Labour, 11, pp. 409-435.
5. Higgins, M., Hysenbegasi, A. and Pozo, S., 2004, Exchange-rate uncertainty and workers’ remittances, Applied Financial Economics, 14, pp. 403-411.
6. Katseli, L. and Glytsos, N., 1986, Theoretical and Empirical Determinants of International Labour Mobility: A Greek-German Perspective, Centre for Economic Policy Research Working Paper 148.
7. Lucas, R. and Stark, O., 1985, Motivations to Remit: Evidence from Botswana, The Journal of Political Economy, 93, pp. 901-918.
8. Ratha, D., 2003, Worker’s Remittances: An Important and Stable Source of External Development Finance in: Global Development Finance, pp.157-172 (World Bank).
9. Straubhaar, T., 1986, The Determinants of Workers' Remittances: The Case of Turkey, Weltwirtschaftliches Archiv, 122, pp. 728-740.
10. Swamy, G., 1981, International Migrant Workers’ Remittances: Issues and Prospects, World Bank Staff Working Paper 481.
11. Taylor, J., 2004, Remittance Corridors and Economic Development: A Progress Report on a Bush Administration Initiative in: Payments in the Americas Conference (Federal Reserve Bank of Atlanta).