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Impact of Overseas Remittances on Economic Growth: Evidences from Bangladesh
| Content Provider | Semantic Scholar |
|---|---|
| Author | Wadood, Syed Naimul Hossain, Amzad |
| Copyright Year | 2015 |
| Abstract | Overseas remittance earnings have become a major source of financial inflow for Bangladesh economy in recent years. However, the advantages of this huge remittance inflow may not be effectively channeled to the economic development via investment and/or efficiency effect. Therefore, the objective of this study is to investigate the nexus between remittances and economic growth in Bangladesh. Using time series data over a 40 year period 1972-2013, this paper investigates the causal link between overseas remittances and economic growth in Bangladesh by employing a number of econometric techniques namely Johansen Cointegration approach, Vector Error Correction (VEC) Model and the Granger Causality test. The cointegration test suggests that there exists a long-run relationship between remittance and economic growth in Bangladesh. Further, the result of Granger Causality shows that remittances do lead to economic growth in Bangladesh. The statistically significant relationship between remittances and economic growth may inspire the policy makers to consider remittances as an alternative policy instrument to motivate the growth of Bangladesh economy. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://mpra.ub.uni-muenchen.de/81657/1/MPRA_paper_81657.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
