American Journal of Data Mining and Knowledge Discovery

| Peer-Reviewed |

Remittances, Poverty and Welfare: Evidence from Cumilla, Bangladesh

Received: Apr. 11, 2019    Accepted: Jun. 05, 2019    Published: Jun. 24, 2019
Views:       Downloads:

Share This Article

Abstract

International remittance is now one of talking issues around the world as it has been playing a vital role in socio-economic development of the developing countries like Bangladesh since last few decades. Thus, the present study explores the impact of international remittances on household poverty and welfare in Bangladesh. To achieve this objective, the study analyses primary data collected from 360 households from Cumilla district of Bangladesh. To find out the impact of remittances on poverty, the study employs the Foster-Greer-Thorbecke (FGT) index. On the other hand, a one way ANOVA test is used to examine the impact of remittances on household welfare. The paper finds that the incidence, depth and severity of poverty among remittance recipient households is quite less than that of remittance non-recipient households. Empirically, the study finds that about 6 percent of remittance recipient households lives below the poverty line while this rate is 48 percent for non-recipient households. The study also finds that the average gross per capita expenditure of remittance receiving households is three times higher than that of non-recipient households which interprets that recipient households enjoy higher level of welfare. Thus, it is found that remittances have significant influence on household welfare. The study recommends nursing international remittances as an important tool in reducing poverty and enhancing welfare.

DOI 10.11648/j.ajdmkd.20190401.17
Published in American Journal of Data Mining and Knowledge Discovery ( Volume 4, Issue 1, June 2019 )
Page(s) 46-52
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Remittances, Poverty, Welfare, Bangladesh

References
[1] Kangmennaang, J., Bezner-Ker, R. and Lunginaah, I. (2017). “Impact of migration and remittance on household welfare among rural households in Northern and Central Malawi”. Migration and Development, 6 (1): 1-17.
[2] Damon, A. and Wisniewski, S. (2015). “Migration responses to adverse household shocks: Do family relationships and types of shocks matter?” Migration and development, 4 (1): 4-22.
[3] Crush, J. (2013). “Linking food security, migration and development”. International Migration, 51 (6): 61-75.
[4] Chowdhury, K. R., Hamid, F. and Chatterjee, D. D. (2010). “Remittance as a tool of economic development: Bangladesh perspective”. Bangladesh Research Publications Journal, 4 (3): 286-296.
[5] Bangladesh Bureau of Statistics. (2015). “Bangladesh Economic Review”. Bangladesh: Ministry of Finance.
[6] World Bank. (2016). “Migration and Remittance Factbook”.
[7] Kundu, N. (2016). “An enquiry into the sluggish growth of workers’ remittance determinants: a case of Cumilla.” Journal of Economics and Business Research, 22 (1): 152-167.
[8] Khan, H., Israr, M., Summar, M., Shaukat, M., Khan, M., Mannan, A., Ahmad, N. and Karim, R. (2011). “Impact of remittances on the socio-economic conditions of rural families in district Poonch of Azad Jammu and Kashmir”. Sarhad Journal of Agriculture, 27 (4): 625-632.
[9] Kumar, B., Hossain, M. E. and Osmani. M. A. G. (2018). “Utilization of international remittances in Bangladesh.” Remittances Review, 3 (1): 5-18.
[10] Kumar, B. (2017). “Remittance: an effective mechanism of development”. Daily Asian Age, 4 (69): 20.
[11] Kumar, B. (2018). “International remittances- one step ahead towards betterment”. Daily Asian Age, 5 (126): 20.
[12] El-Sakka, M. I. T. and Mcnabb, R. (1999). “The macroeconomic determinants of international remittances”. World Development, 27 (8): 1493-1502.
[13] Meckenzie, D. and Hildebrandt, N. (2005). “The effects of migration on child health in Mexico”. Economia Journal of the Latin American and Caribbean Economic Association, 6 (1): 257-289.
[14] Cordova, L. E. (2004). “Globalization, Migration and Development: the Role of Mexican International Remittances”. USA: Inter-American Development Bank.
[15] Abbas, K., Sabir, H. M., Shehzadi, A. and Abbas, Q. (2014). “Impact of workers’ remittances on household welfare in district Jhang (A case study of Tehsil 18 Hazari)”. Journal of Finance and Economics, 2 (4): 131-135.
[16] Chami, R., Fullenkamp, C. and Jahjah, S. (2003). “Are international remittance flows a source of capital for development?” IMF Staff Papers, 52 (1): 55-81.
[17] Faini. R. (2007). “Remittances and the brain drain: do more skilled internationals remit more?” The World Bank Economic Review, 21 (2): 177–191.
[18] Adam, R. H. J. and Page, J. (2005). “Do international migration, remittance reduce poverty in developing countries?” World Development, 33 (10): 1645-1669.
[19] Anyanwu, J. C. and Erhijakpor, A. E. O. (2010). “Do international remittances affect poverty in Africa?” African Development Review, 22 (1): 51-91.
[20] Raihan, S., Khondker, B., Sugiyarto, G. and Jha, S. (2009). “Remittances and Household Welfare: A Case Study of Bangladesh.” Philippines: Asian Development Bank.
[21] Wurku, S. and Marangu, J. (2015). “The impact of remittance on poverty: evidence from the South African national dynamics study (NIDS)”. African Human Mobility Review, 1 (1): 78-99.
[22] Serino, M. N. and Kim, D. (2011). “How international remittances affect poverty in developing countries?” Journal of Economic Development, 36 (4): 17-39.
[23] Kibikyo, D. L. and Omar, I. (2012). “Remittances effect on poverty and social development in Mogadishu, Somalia 2009”. Microeconomics and Macroeconomics, 1 (1): 1-11.
[24] Betti, G. and Lundgren, L. (2012). “The impact of remittances and equivalence scales on poverty in Tajikistan”. Central Asian Survey, 31 (4): 395-408.
[25] Olowa, O. W., Awoyemi, T. T., Shittu, M. A. and Olowa, O. A. (2013). “Effects of remittances on poverty among rural households in Nigeria”. European Journal of Sustainable Development, 2 (4): 263-284.
[26] Gupta, S., Powell, R. and Yang, Y. (2009). “Effects of remittances on poverty and financial development in Sub-Saharan Africa”. World Development; 37 (1): 104-115.
[27] Acosta, P., Calderon, C., Fajnzylber, P. and Lopez, H. (2006). “Remittances and development in Latin America”. The World Economics, 29 (7): 957-987.
[28] Wolde, T. G. (2018). “Impact of remittance on rural household s welfare: evidence from North Wollo Zone, Gubalafto Woreda in Amhara regional state, Using IV Estimation Technique.” Journal of Global Economics, 6 (1): 2-6.
[29] Akanle, O. and Adesina, J. O. (2017). “Remittances and household welfare in Nigeria.” African Population Studies, 31 (1): 3194-3212.
[30] Javed, M., Awan, M. S. and Waqas, M. (2015). “International migration, remittances inflow and household welfare: an intra-village comparison from Pakistan.” Social Indicators Research, 130 (2): 779-797.
[31] Wadood, S. N. and Hossain, A. (2017). “Microeconomic impact of remittances on household welfare: Evidences from Bangladesh.” Business and Economic Horizons, 13 (1): 10-29.
[32] Ahmed, R., Saha, J. K., Begum, M. and Haque, M. S. (2018). “Impact of foreign remittances on household welfare in Sylhet region of Bangladesh.” Journal of Business and Economic Management, 6 (2): 22-32.
[33] Banik, P. and Kumar, B. (2019). “Impact of information literacy skill on students’ academic performance in Bangladesh.” International Journal of European Studies, 3 (1): 27-33.
[34] Kumar, B. (2019). “The impact of international remittances on poverty alleviation in Bangladesh.” Remittances Review, 4 (1): 67-86.
[35] Foster, J., Greer, J. and Thorbecke, E. (1984). “A class of decomposable poverty measures”. Econometrica, 52 (3): 761–766.
Cite This Article
  • APA Style

    Bezon Kumar. (2019). Remittances, Poverty and Welfare: Evidence from Cumilla, Bangladesh. American Journal of Data Mining and Knowledge Discovery, 4(1), 46-52. https://doi.org/10.11648/j.ajdmkd.20190401.17

    Copy | Download

    ACS Style

    Bezon Kumar. Remittances, Poverty and Welfare: Evidence from Cumilla, Bangladesh. Am. J. Data Min. Knowl. Discov. 2019, 4(1), 46-52. doi: 10.11648/j.ajdmkd.20190401.17

    Copy | Download

    AMA Style

    Bezon Kumar. Remittances, Poverty and Welfare: Evidence from Cumilla, Bangladesh. Am J Data Min Knowl Discov. 2019;4(1):46-52. doi: 10.11648/j.ajdmkd.20190401.17

    Copy | Download

  • @article{10.11648/j.ajdmkd.20190401.17,
      author = {Bezon Kumar},
      title = {Remittances, Poverty and Welfare: Evidence from Cumilla, Bangladesh},
      journal = {American Journal of Data Mining and Knowledge Discovery},
      volume = {4},
      number = {1},
      pages = {46-52},
      doi = {10.11648/j.ajdmkd.20190401.17},
      url = {https://doi.org/10.11648/j.ajdmkd.20190401.17},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ajdmkd.20190401.17},
      abstract = {International remittance is now one of talking issues around the world as it has been playing a vital role in socio-economic development of the developing countries like Bangladesh since last few decades. Thus, the present study explores the impact of international remittances on household poverty and welfare in Bangladesh. To achieve this objective, the study analyses primary data collected from 360 households from Cumilla district of Bangladesh. To find out the impact of remittances on poverty, the study employs the Foster-Greer-Thorbecke (FGT) index. On the other hand, a one way ANOVA test is used to examine the impact of remittances on household welfare. The paper finds that the incidence, depth and severity of poverty among remittance recipient households is quite less than that of remittance non-recipient households. Empirically, the study finds that about 6 percent of remittance recipient households lives below the poverty line while this rate is 48 percent for non-recipient households. The study also finds that the average gross per capita expenditure of remittance receiving households is three times higher than that of non-recipient households which interprets that recipient households enjoy higher level of welfare. Thus, it is found that remittances have significant influence on household welfare. The study recommends nursing international remittances as an important tool in reducing poverty and enhancing welfare.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Remittances, Poverty and Welfare: Evidence from Cumilla, Bangladesh
    AU  - Bezon Kumar
    Y1  - 2019/06/24
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ajdmkd.20190401.17
    DO  - 10.11648/j.ajdmkd.20190401.17
    T2  - American Journal of Data Mining and Knowledge Discovery
    JF  - American Journal of Data Mining and Knowledge Discovery
    JO  - American Journal of Data Mining and Knowledge Discovery
    SP  - 46
    EP  - 52
    PB  - Science Publishing Group
    SN  - 2578-7837
    UR  - https://doi.org/10.11648/j.ajdmkd.20190401.17
    AB  - International remittance is now one of talking issues around the world as it has been playing a vital role in socio-economic development of the developing countries like Bangladesh since last few decades. Thus, the present study explores the impact of international remittances on household poverty and welfare in Bangladesh. To achieve this objective, the study analyses primary data collected from 360 households from Cumilla district of Bangladesh. To find out the impact of remittances on poverty, the study employs the Foster-Greer-Thorbecke (FGT) index. On the other hand, a one way ANOVA test is used to examine the impact of remittances on household welfare. The paper finds that the incidence, depth and severity of poverty among remittance recipient households is quite less than that of remittance non-recipient households. Empirically, the study finds that about 6 percent of remittance recipient households lives below the poverty line while this rate is 48 percent for non-recipient households. The study also finds that the average gross per capita expenditure of remittance receiving households is three times higher than that of non-recipient households which interprets that recipient households enjoy higher level of welfare. Thus, it is found that remittances have significant influence on household welfare. The study recommends nursing international remittances as an important tool in reducing poverty and enhancing welfare.
    VL  - 4
    IS  - 1
    ER  - 

    Copy | Download

Author Information
  • Department of Economics, Rabindra University, Bangladesh, Sirajganj, Bangladesh

  • Section