Business and Economic Horizons

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 13
Issue 1
Online publication date 2017-02-23
Title Microeconomic impact of remittances on household welfare: Evidences from Bangladesh
Author Syed Naimul Wadood, Md. Amzad Hossain
Abstract
This paper investigates the effect of both international and domestic remittances and migration on household welfare in Bangladesh. We employ a number of variables such as different types of poverty measures, household consumption expenditure, expenditures on health and education etc. to define household welfare. We use the Household Income and Expenditure survey 2010 to estimate the impact of remittance on household welfare. To address the issue of self-selection, we have used Propensity Score Matching (PSM) technique. The results reveal that although both internal and external remittance remittances have significant impact on reducing poverty and increasing consumption expenditure, the degree of impact is much higher for external remittance compared to internal remittance. However we find no impact of remittance on Household expenditure on education and healthcare.

Citation
References
Adams, R. H., & Page, J. (2003). Impact of International Migration and Remittances on Poverty. Paper presented at the Department for International Development/ World Bank Conference on Migrant Remittances. London, 9-10 October
 
Adams R.H (1991), The effects of international remittances on poverty, inequality, and development on rural Egypt, International Food Policy Research Institute Research Report 86
 
Bangladesh Bank (2014). Annual Report 2012-2013, Bangladesh Bank.
 
BBS (2011). Preliminary Report on Household Income & Expenditure Survey 2010. Bangladesh Bureau of Statistics, Statistics and Information Division, Ministry of Planning, Government of the People's Republic of Bangladesh.
 
Becker, S. O., & Ichino, A. (2002), Estimation of average treatment effects based on propensity scores. The Stata Journal, 2(4), pp. 358-377
 
Chimhowu, A., Picsse, J., & Pinder, C. (2004), The impact of remittances. Enterprise Development Impact Assessment Information Service EDIAIS, Issue 29, April 2004.
 
D8 Secretariat (2008). High fees drive Bangladesh remittance into informal channels. Developing 8 Organisation for Economic Cooperation.
 
Dehejia, R. H., & Wahba, S. (1999). Causal effects in nonexperimental studies: Reevaluating the evaluation of training programs. Journal of the American Statistical Association, 94(448), Dec. 1999, pp. 1053-1062. https://doi.org/10.1080/01621459.1999.10473858
 
De Haas, H. (2007). Remittances, migration and social development: A conceptual review of the literature. United Nations Research Institute for Social Development. Geneva.
 
Gustafsson, B., & Makonnen, N. (2003). Poverty remittances in Lesotho. Journal of African Economics, 2(1), pp. 49-73
https://doi.org/10.1093/oxfordjournals.jae.a036774
 
Efron, B., & Tibshirani, R. J. (2004). An introduction to the bootstrap. Chapman & Hall/CRC.
 
Findley, S., & Sow, S. (1998). From season to season: Agriculture, poverty, and migration in the Senegal River Valley, Mali. in Appleyard, R. Eds. Emigration dynamics in developing countries: Sub-Saliaran Africa, pp. 69-144. London: Ashgate Publishing Ltd.
 
Hanson, G. H. (2010). International migration and the developing world, Chapter 66, in Rodrik, D. and Rosenzweig, M., Eds.: Handbook of Development Economics, Vol. 5, The Netherlands: North Holland, 2010, pages 4363-4414. https://doi.org/10.1016/B978-0-444-52944-2.00004-5
 
Heckman, J. J., Ichimura, H., & Todd, P. (1998). Matching as an econometric evaluation Estimator. Review of Economic Studies, 65, pp. 261-294. https://doi.org/10.1111/1467-937X.00044
 
Horowitz, J. L. (2003). The bootstrap in econometrics. Statistical Science, 18(2), pp. 211-218. https://doi.org/10.1214/ss/1063994976
 
Katz, E. (2000). Individual, household and community-level determinants of migration in Ecuador: Are there gender differences, Prepared for the Annual Meeting of the Population Association of America, Los Angeles, CA, March 23-25, 2000
 
Khan, M. W. R. (2008). The micro level impact of foreign remittances on incomes in Bangladesh A measurement approach using the propensity score. Centre for policy Dialogue, Occasional Paper No. 73
 
Khandker, S.R., Koolwal, G. B., & Samad, H. A. (2010). Handbook on impact evaluation: Quantitative methods and practices. The World Bank, Washingon D.C.
 
Koc, I., & I. Onan. (2001). The impact of remittances of international migrants on the standard of living of the left-behind families in Turkey. Conference Proceedings, XXIV International Union for the Scientific Study of Population (IUSSP) General Conference, Salvador, Brazil, 18-24 April.
 
Ministry of Finance (2014). Bangladesh Economic Review 2014, Economic Advisors' Cell, Finance Division, Ministry of Finance, Government of the People's Republic of Bangladesh.
 
Rosenbaum, P. R., & Rubin, D. B. (1983). The Central Role of the propensity score in observational studies for causal effects. Biometrika, 70 (1), pp. 41-55. https://doi.org/10.1093/biomet/70.1.41
 
Rosenbaum, P. R., & Rubin, D. B. (1985). Constructing a control group using multivariate matched sampling methods that incorporate the propensity. The American Statistician, 39 (1), pp. 33-38
 
Russell, S.S., Jacobsen, K., & Stanley, W.D. (1990). International migration and development in Sub-Saharan Africa, Volume 2, Country Analyses. World Bank Discussion Paper No. 102. The World Bank, Washington, D.C.
 
Taylor, E. J. (1996). International migration and national development. Population Index, 62(2), Summer, pp.181-212
https://doi.org/10.2307/3646297
 
Taylor, E. J. (1999). The new economics of labour migration and the role of remittances in the migration process. International Migration, 37 (1), pp 63- 88. https://doi.org/10.1111/1468-2435.00066
Keywords Remittances, migration, Bangladesh, propensity score matching
DOI http://dx.doi.org/10.15208/beh.2017.02
Pages 10-29
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Share
Search in articles
Statistics
Journal Published articles
BEH 558
Journal Hits
BEH 1133853
Journal Downloads
BEH 41281
Total users online -