The macroeconomic determinants of remittances in Bangladesh

Hasan, Mohammad Monirul (2008): The macroeconomic determinants of remittances in Bangladesh.

Abstract

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
• Language: English
• 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

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