The Impact of Remittances on Economic Growth in a Remittance Receiving Country

Authors

  • Md. Shahadat Hossain Department of Economics, School of Business and Economics, Universiti Putra Malaysia (UPM), Malaysia
  • Prof. Dr. Lee Chin Department of Economics, School of Business and Economics, Universiti Putra Malaysia (UPM), Malaysia and Econometrics Department, Tashkent State University of Economics, Tashkent, Uzbekistan
  • Prof. Dr. Rusmawati Said Department of Economics, School of Business and Economics, Universiti Putra Malaysia (UPM), Malaysia
  • Prof. Dr. Suryati Binti Ishak Department of Economics, School of Business and Economics, Universiti Putra Malaysia (UPM), Malaysia

DOI:

https://doi.org/10.14738/assrj.1202.18251

Keywords:

Economic Growth, Remittances, Financial Development, ARDL bounds testing, SDG

Abstract

The study is to examine the impact of remittances on economic growth, in particular how the development of domestic financial sector influences a country’s capacity to take advantage of remittances. Bangladesh’s remittances, specifically inflows, are an important source of income support and economic growth. Employing ARDL model on a dataset of 46 years from 1976 to 2021, this study finds that remittances boost growth in Bangladesh with developed financial systems. The study also finds that capital formation is positively associated with economic growth in the long run while remittance is negatively influencing economic growth. Thus, policies should focus on developing the financial system, reducing the cost of remitting and encouraging migrants to send remittances using formal channels.

Downloads

Published

2025-02-20

How to Cite

Hossain, M. S., Chin, L., Said, R., & Ishak, S. (2025). The Impact of Remittances on Economic Growth in a Remittance Receiving Country. Advances in Social Sciences Research Journal, 12(02), 158–182. https://doi.org/10.14738/assrj.1202.18251

Issue

Vol. 12 No. 02 (2025): Advances in Social Sciences Research Journal

Section

Articles

License

Copyright (c) 2025 Md. Shahadat Hossain, Prof. Dr. Lee Chin, Prof. Dr. Rusmawati Said, Prof. Dr. Suryati Binti Ishak

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors wishing to include figures, tables, or text passages that have already been published elsewhere are required to obtain permission from the copyright owner(s) for both the print and online format and to include evidence that such permission has been granted when submitting their papers. Any material received without such evidence will be assumed to originate from the authors.