Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Emigrant’s Remittances, Dutch Disease and Capital Accumulation in Bangladesh

Emigrant’s Remittances, Dutch Disease and Capital Accumulation in Bangladesh This article examines varying macroeconomic impacts of international emigrant remittances in Bangladesh since 1976 by using a vector auto-regression (VAR) framework. Bangladesh has recorded better economic performance during last two decades, 1996–2014, compared to earlier two decades, 1976–1995. The time-series analysis therefore uncovers some transition in the remittance impacts composed of the ‘Dutch Disease’ effect and the capital accumulation effect. The empirical results reveal the existence of the Dutch Disease effect for the first period, 1976–1995, but turned to show the positive impact on capital accumulation for the second period, 1996–2014. We speculate that the recent manufacturing-oriented policies together with institutional improvements have contributed to the transformation in the remittance impact towards a positive direction between two periods.JEL: F22, F39, O53 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png South Asian Journal of Macroeconomics and Public Finance SAGE

Emigrant’s Remittances, Dutch Disease and Capital Accumulation in Bangladesh

Download PDF
23 pages

Loading next page...
 
/lp/sage/emigrant-s-remittances-dutch-disease-and-capital-accumulation-in-qBlJwOAd53

References (24)

Publisher
SAGE
Copyright
© 2018 SAGE Publications
ISSN
2277-9787
eISSN
2321-0273
DOI
10.1177/2277978718760070
Publisher site
See Article on Publisher Site

Abstract

This article examines varying macroeconomic impacts of international emigrant remittances in Bangladesh since 1976 by using a vector auto-regression (VAR) framework. Bangladesh has recorded better economic performance during last two decades, 1996–2014, compared to earlier two decades, 1976–1995. The time-series analysis therefore uncovers some transition in the remittance impacts composed of the ‘Dutch Disease’ effect and the capital accumulation effect. The empirical results reveal the existence of the Dutch Disease effect for the first period, 1976–1995, but turned to show the positive impact on capital accumulation for the second period, 1996–2014. We speculate that the recent manufacturing-oriented policies together with institutional improvements have contributed to the transformation in the remittance impact towards a positive direction between two periods.JEL: F22, F39, O53

Journal

South Asian Journal of Macroeconomics and Public Finance – SAGE

Published: Jun 1, 2018

There are no references for this article.