Hassan, Gazi and Shakur, Shamim and Bhuyan, Mohammed (2012): Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh.
Preview |
PDF
MPRA_paper_40086.pdf Download (521kB) | Preview |
Abstract
The macroeconomic impacts of remittances flows on developing economies are not well understood. The paper is an attempt to understand the impact of inward remittances flows on per capita GDP growth in Bangladesh during 1974-2006. We find that the growth effect of remittances is negative at first but becomes positive at a later stage- a strong evidence of a non-linear relationship. This could be due to unproductive use of remittances in the beginning followed by more productive utilisation. Remittances positively affect per capita GDP growth in Bangladesh when the complementarity between remittances and financial development is incorporated into the analysis.
Item Type: | MPRA Paper |
---|---|
Original Title: | Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh |
Language: | English |
Keywords: | Remittances; Economic Growth; Bangladesh; IV-estimation; Remittances utilisation |
Subjects: | F - International Economics > F0 - General O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances |
Item ID: | 40086 |
Depositing User: | Gazi M. Hassan |
Date Deposited: | 16 Jul 2012 13:18 |
Last Modified: | 28 Sep 2019 04:39 |
References: | Azad, A.K. (2004) “Migrant Workers’ Remittances: Can it be a Source of Finance for Micro-Enterprise Development in Bangladesh?” Paper presented at Asia Pacific Regional Micro Credit Summit Meeting of Councils, Dhaka, February 16 – 19 Barua, S., Majumder, M. and Akhtaruzzaman, M. (2007) “Determinants of Workers’ Remittances in Bangladesh: An Empirical Study” Working Paper No. WP 0713, Policy Analysis Unit, Bangladesh Bank Buchenau, J. (2008) “Migration, Remittances, and Poverty Alleviation in Bangladesh: Report and Proposal” Preparatory Assistance for Pro Poor Trade, UNDP: Dhaka Catrinescu, N., M. Leon-Ledesma, M. Piracha and B. Quillin (2006) “Remittances, Institution and Growth” IZA Discussion Paper No. 2139, Bonn, Germany Chami, Ralph, Adolfo Barajas, Thomas Cosimano, Connel Fullenkamp, Micheal Gapen and Peter Montiel (2008) “Macroeconomic Consequences of Remittances” Occasional Paper No. 259, International Monetary Fund Chami, R., C. Fullenkamp and S. Jahjah (2003). Are Immigrant Remittance Flows a Source of Capital for Development? IMF Working Paper 03/189, Washington, DC. De Bruyn, T. and Kuddus, U (2005) “Dynamics of Remittance Utilization in Bangladesh” International Organization for Migration (IOM) De Bruyn, T. and Wets, J. (2006) “Remittances and Development.” Conference Report on Migration and Development, International Organization for Migration (IOM) Faini, R. (2006) “Migration and Remittances: The impact on the Country of Origin” Paper presented at EUDN-AFD Conference on Migration and Development, Paris, November 8 Giuliano, Paola and Marta Ruiz-Arranz (2005), “Remittances, Financial Development, and Growth”, IMF Working Paper No. 05/234 International Monetary Fund (2005) “Two Current Issues Facing Developing Countries” in World Economic Outlook Kapur, D. (2004): “Remittances: The New Development Mantra?”, G-24 Discussion Paper No.29, UN Conference on Trade and Development, Geneva, Switzerland Khan, M. W. R. (2008) “The Micro Level Impact of Foreign Remittances on Incomes in Bangladesh: A Measurement Approach Using the Propensity Score” Centre for Policy Dialogue: Dhaka Mahmud, W. and Osmani, S. R. (1980) “Impact of Emigrant Workers' Remittances on the Bangladesh Economy", Bangladesh Development Studies, Vol. VIII, No. 3 Murshid, K, Iqbal, K., and Ahmed, M. (2002) “A Study on Remittance Inflows and Utilization” International Organization for Migration (IOM) Quibria, M. G. (1986) “Migrant Workers and Remittances: Issues for Asian Developing Countries”, Asian Development Review, Vol. 4. Quibria, M. G. (1997) “International Migration, Remittances and Income Distribution in the Source Country: A Synthesis” Bulletin of Economic Research, Vol. 49, No. 1 Quibria, M. G. and Ahmad, Shafi (2008) “Aid Effectiveness in Bangladesh” MPRA Paper No. 10299 Ratha, Dilip (2007): Leveraging Remittances for Development. Policy Brief, June. Migration Policy Institute. Washington D.C. Siddiqui, T. and Abrar, C.R. (2003) “Migrant Worker Remittances and Micro-Finance in Bangladesh” Working Paper No. 38, Social Finance Programme, International Labour Office Siddqui, T. (2004) “Effeciency of Migrant Workers’ Remittances: The Bangladesh Case” Asian Development Bank Stahl and Habib (1989) “The Impact of Workers’ Remittances on Indigenous Industries: Evidence from Bangladesh” The Developing Economies, XXVII-3 World Bank (2008) Remittance and Development, Washington: DC World Bank (2006) The Development Impact of Workers’ Remittances in Latin America, Vol. 2: Detailed Findings (Chapter 3, Section V), Report No. 37026 (Washington) World Bank (2005) Global Economic Prospect 2006, Washington: DC |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/40086 |