Abstract
Remittance inflows in the economy of Bangladesh are getting larger every passing year, matching with the increasing external demand for its manpower. The ensuing development impacts of remittances, as a means of transfer of wealth, on socioeconomic factors are increasingly viewed with importance. Remittances have helped improve the social and economic indicators like nutrition, living condition and housing, education, health care, poverty reduction, social security, and investment activities of the recipient households. The relative weight of remittances has also increased against most of the macroeconomic variables alongside the contribution to GDP. Moreover, Bangladesh has been able to avoid any serious imbalances in BOP’s current account, although it has persistent merchandize trade deficits. Not only that, the export tradable sector has thus far remained unaffected from the Dutch Disease effects of remittances.
Highlights
Increased economic activities due to economic globalization in the 1980s and 1990s led to a rapid international rise in demand for skilled and unskilled manpower
First-round effects of remittances on economic development are felt at the households of the migrants (Taylor & Wyatt, 1996) when we find remittances move as person-toperson flows, targeted to the needs of the recipients most of the time (Ratha & Mohapatra, 2007)
We argue that the development impacts of remittances on the economy and society are affected by the manner remittances are put to use
Summary
Increased economic activities due to economic globalization in the 1980s and 1990s led to a rapid international rise in demand for skilled and unskilled manpower. That paved the way for many people, including those of the developing countries, to move to the outside destinations (Castles & Davidson, 2000). Many others have left the country for different pull and push factors.. Many others have left the country for different pull and push factors.1 This migration was, a welcome relief for Bangladesh as its development strategies since independence could not cope with and accommodate the growing demand for employment from a fast growing population. The consequence of the multidirectional relocation of people, both temporary and permanent, was the quick rise in remittances in the economy of Bangladesh
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