Impact of Remittance on Gross Domestic Product (GDP) growth in Bangladesh: An overview from 2000 to 2020

Abstract

This study is to determine the role of remittance on GDP growth in Bangladesh for time series data from 2000 to 2020. Numerous factors influence a country's economic growth, but the foremost concern of the current study is remittance. To assess the association between remittance and GDP growth in Bangladesh gross national savings and gross national expenditure are also taken into consideration. The connection between economic growth and remittances is a subject of debate over the period across the world. In many countries, remittances have positive effect on growth of economy and some have no effect on economic growth, a lot of studies revealed. The primary aim of this study is to examine the association between remittances and economic growth in Bangladesh. For data analysis, the model is constructed with economic growth measured by Gross Domestic Product (GDP) as the dependent variable, and three independent variables, namely remittances, gross savings, and gross expenditure. In the case of Bangladesh, the current study has shown a statistically significant long-term positive correlation between remittances and GDP's economic growth. This study contributes to the broader discussion on the influence of remittances on economic development and underscores the notable role of remittances in fostering economic growth in Bangladesh.