Workers’ Remittances and Economic Growth: Evidence From Bangladesh

Abstract

Workers’ remittances are assuming a significant function as a wellspring of foreign exchange earnings for developing countries. As a result, these countries inflows are growing rapidly. This study inspects the relationship between worker’s remittances and economic growth of Bangladesh using the data set for the period 2007-2018. The results using the Granger-causality test show that the workers’ remittances and economic growth show a bi-directional causal relation. There is a bi-directional causal relation between capital and economic growth. The relationship is negative when the study considers number of workers growth and economic growth. The used growth model shows that economic growth of Bangladesh is remittances-dependent. Hence, it provides evidence to support those remittances is a regulating issue of economic growth of Bangladesh.