Effects of Remittances on Health Expenditure and Treatment Cost of International Migrant Households in Bangladesh

Abstract

The Bangladesh economy is characterized by remarkable progress in international migration, resulting in a considerable inflow of remittance. Although many studies have attempted to study the effect of foreign remittances on household expenditure patterns, no effort has been made to critically analyze the effects and implications of migration and remittance flow on migrant households’ health expenditure. This article attempts to explore the effect of remittance on the health expenditure of remittance recipient households (RRHs) and the impact of the cost of treatment. Descriptive and regression analyses and standard micro-econometric techniques were applied by analyzing the nationally representative household data set of the Household Income and Expenditure Survey 2010 of Bangladesh. Results show that RRHs are more likely to spend more on health matters and more likely to have higher treatment costs than non-recipient households. Thus, remittances are significantly associated with health expenditure and the cost of treatment. International migration seems to be a household strategy characterized by a high expected return.