IDEAS home Printed from https://ideas.repec.org/a/rfa/bmsjnl/v4y2018i1p1-9.html
   My bibliography  Save this article

Econometric Models for Forecasting Remittances of Bangladesh

Author

Listed:
  • Tamanna Islam
  • Ashfaque A. Mohib
  • Shahnaz Zarin Haque

Abstract

At present, the remittance of Bangladesh (RB) is the largest source of foreign exchange earning of the country. The RB plays a critical role in alleviating the foreign-exchange constraint and supporting the balance of payments, enabling imports of capital goods and raw materials for industrial development. Remittance from overseas migrant workers certainly increases the income disparity between classes of the rural society. Therefore forecasting plays an important role to know the future situation of economic condition. This paper employed the prospective data on RB to derive a unique and suitable forecasting model. The data were collected from Bangladesh Bank (BB) during January, 1998 to December, 2003. The Autoregressive Integrated Moving Average (ARIMA) and the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) models were used to find out the best one. The findings indicated that the ARIMA (0,1,1) (0,2,1)12 and the GARCH (2,1) models were appropriate for our data and the GARCH (2,1) model appeared to be the best one between these.

Suggested Citation

  • Tamanna Islam & Ashfaque A. Mohib & Shahnaz Zarin Haque, 2018. "Econometric Models for Forecasting Remittances of Bangladesh," Business and Management Studies, Redfame publishing, vol. 4(1), pages 1-9, March.
    • Handle: RePEc:rfa:bmsjnl:v:4:y:2018:i:1:p:1-9
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/bms/article/view/2860/3003
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/bms/article/view/2860
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nyoni, Thabani, 2019. "Modeling and forecasting remittances in Bangladesh using the Box-Jenkins ARIMA methodology," MPRA Paper 92463, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:bmsjnl:v:4:y:2018:i:1:p:1-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.