Remittances, Financial Development and Economic Growth in Bangladesh
2013 (English)Conference paper, Abstract (Other academic)
In Bangladesh, remittances from migrant workers are an important component of national income and a source for financing consumption and investment. This paper investigates the relationship between remittances, financial sector development and economic growth in Bangladesh over the period of 1976-2011. We apply a cointegration approach to explore this relationship and find a long-run steady among these variables. 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 a shock absorber to income changes. The policy implications are discussed in the text.
Place, publisher, year, edition, pages
Remittances, Output, Financial sector development, Remittances, Cointegration, Bangladesh
IdentifiersURN: urn:nbn:se:liu:diva-90045OAI: oai:DiVA.org:liu-90045DiVA: diva2:611801
Bridging the Policy-Action Divide: Challenges and Prospects for Bangladesh, University of California, Berkeley, USA, February 22-24, 2013