Title: Socio-economic Impact of Remittance on Households: A Study on Khulna, Bangladesh
Abstract: Foreign remittance to Bangladesh now become one of the vital sources of foreign exchange earnings and it also plays a significant role by reducing the foreign-exchange constraint and improving the balance of payments, ensuring imports of various types of capital goods, and raw materials for industrial development. Furthermore, it has also increased the supply of savings and investment for capital formation and development in country's economic condition and thus it accelerates economic development of a country. But this study attempted to evaluate the impact of foreign remittances on socio-economic condition of households in Khulna city. This paper uses various data of households of Khulna city to analyze the impact of foreign remittances on the socio-economic condition of households. The results of this analysis were compared to those households who do not receive remittances to clearly identify the decision of the households to spend remittances in different sector. Unlike to other studies, this study reveals that households receiving remittances spend less on food consumption, consumer durables and other consumer goods than do households who do not receive any remittances. This study finds that households receiving remittances spend heavily on various investment activities like land purchase, building construction, other investment activities and this investment constitutes more than half of the remittances received during the last 12 months counted from August 2012 to July 2013. This study also finds that households receiving remittances in Khulna city spend more on education than do households having no remittances which is a good sign of any economy as investment in education is treated as investment in human capital. However, this study also finds that foreign remittances help households to spend more on social ceremonies, households' services and electrical goods which indicate improved living standard and socio-economic condition.
Publication Year: 2015
Publication Date: 2015-01-01
Language: en
Type: dataset
Indexed In: ['datacite']
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Cited By Count: 1
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