ISSN: 2225-8329
Open access
This paper examines the influence of few selected macroeconomic factors which are assumed to have influence on the flow of foreign remittances in Bangladesh. Yearly data between 1976 and 2011 have incorporated and a multivariate time series regression model have been designed to estimate the absolute relationship between remittances and macroeconomic determinants. It has found that professional and unskilled migrant have very low negative but significant regression coefficients but semi-skilled migrants have positive significant coefficient. Among other macroeconomic factors deposit interest rates and foreign exchange rates are also found to have statistically significant coefficients. Test of Granger causality reveals that foreign remittances have bi-directional causality with semi-skilled and un-skilled migrants and have uni-directional causality from professional migrants to remittances and remittances to DSE all share price index. However, extensive investigation is very essential to identify other macroeconomic factors that might cause the flow of foreign remittances in Bangladesh.
Abdel-Rahman A. M. M. (2006), “The Determinants of Foreign Worker Remittances in the Kingdom of Saudi Arabia”, Journal of King Saud University, Administrative Science, Vol. 18, No. 2, pp. 93-121.
Bascom, W. (1990), “Remittance Inflows and Economic Development in Selected Anglophone Caribbean Countries”, Working Paper No. 58 of the commission for the Study of International Migration and Cooperative Economic Development, Washington D.C.
Brown, R. P. C. (1997), “Estimating Remittance Functions for Pacific Island Migrants”, World Development, Vol. 25, pp. 1345-1351.
Campbell, T. (2003), “Determinants of Foreign Inflows from Current Transfer into Barbados”, Savings and Development, Issues 2/2003.
El-Saaka, M. I. T., and MvNaab, R. (1999), “The Macroeconomic Determinants of Migrant Remittances”, World Development, Vol. 27, pp. 1493-1502.
Glytsos, P. (1988), “Remittances in Temporary migration: A Theoretical Model and Its Testing with Greek- German Experience”, Weltwirschaftliches Archive Vol. 124, pp. 524-549.
Gupta, P. (2005), “Macroeconomic Determinants of Remittances: Evidence from India”, International Monetary Fund, Working Paper No. WP/05/224.
Haung, P., Vargas-Silva. (2005), “Macroeconomic Determinants of Workers’ Remittances: Host Vs Home Country’s Economic Condition”, Econpapers: International Finance, econpa.wustl.edu
Lucas, R. E. B, and Stark, O. (1985), “Motivations to Remit: Evidence from Boswana”, Journal of Political Economy, Vol. 93, no. 5, pp. 901-918.
Messy, D. S., and Parrado, A. (1998), “International Migration and Business Formation in Mexico”, Social Service Quarterly, Vol. 79, No. 1, pp. 1-20.
Piorine, B. (1997), “A Theory of Remittances as an Implicit Family Loan Arrangement”, World Development, Vol. 25, No. 5, pp. 589-611.
Solimano, A. (2003), “Workers’ Remittances to the Andean Region: Mechanisms, Costs and Development Impact”, ECLAC, Prepared for the Multilateral Investment Fund- IDB’s Conference on Remittances and Development, Quito-Ecuador.
Swamy, G. (1981), “International Migrant Worker’s Remittances: Issues and Prospects”, World Development, International Migration, Vol. 30, pp. 267-287.
In-Text Citation: (Ali, 2012)
To Cite this Article: Ali, M. B. (2012). Macroeconomic Factors Influencing Foreign Remittances: The Case of Bangladesh. International Journal of Academic Research in Accounting Finance and Management Sciences, 2(3), 187–200.
Copyright: © 2021 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode