Impact of Foreign Remittances on Household Welfare in Bangladesh: Evidence from Public and Private Bank

Abstract

Remittance is the rapidly growing source of income through which most emigrant households fulfill their daily expenditure. The study identifies the effect of foreign remittance and migration on household welfare in Bangladesh. The primary source is the main basis to collect data mostly which is collected from the public and private banks of Bangladesh. The research also considers the secondary data to display the trends of remittances over the past years, the effect of remittances on the gross domestic product (GDP), import payments, export earnings, and balance of payments. The research further applies descriptive statistics to illustrate the demographic features of migrants as well as to show the scenario of migration and remittances. It also applies multiple regression analysis to guess the household spending on education, healthcare, food, and financial inclusion. The estimated outcome from the analysis shows that foreign remittance has a more significant impact on household expenditure. The major portion of remittance is utilized for medical treatment, education, food purchasing, financial burden, and savings. Lastly, the research paper discloses that migrant workers contribute more to the economy of Bangladesh.