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Remittances, Financial Development and Economic Growth in Bangladesh

Author

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  • Gazi Salah Uddin
  • Bo Sjö

Abstract

In Bangladesh, remittances from migrant workers are an important component of national income and a source for financing consumption and investment. This article investigates the relationship between remittances, financial sector development and economic growth in Bangladesh over the period of 1976–2011. In the long run, the inflow of remittances and the expansion of the financial sector drive the growth in GDP, whereas in the short run, remittances act as a shock absorber to income changes.

Suggested Citation

  • Gazi Salah Uddin & Bo Sjö, 2013. "Remittances, Financial Development and Economic Growth in Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(2), pages 261-273, September.
    • Handle: RePEc:sae:soueco:v:14:y:2013:i:2:p:261-273
    DOI: 10.1177/1391561413500174
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    References listed on IDEAS

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    Cited by:

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    2. Temitayo Olumide Olaniyan, 2019. "Interactive Effects of Remittances and Financial Sector Development on Economic Growth in Nigeria," Remittances Review, Remittances Review, vol. 4(1), pages 19-39, May.
    3. Fromentin, Vincent, 2017. "The long-run and short-run impacts of remittances on financial development in developing countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 192-201.
    4. Athenia Bongani Sibindi & Lindiwe Ngcobo, 2018. "Migrant Remittance Patterns in South Africa: A Micro-Level Analysis," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 109-117.

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    More about this item

    Keywords

    Remittances; economic growth; financial sector development; cointegration; Bangladesh;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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