CPD Working Paper 73
The Micro Level Impact of Foreign Remittances on Incomes in Bangladesh
A Measurement Approach Using the Propensity Score
This paper is an attempt to carry out a statistical study on the effect of remittances on per capita income, which has a direct implication on the welfare of households. The author argues that such an effort is necessary in order to derive more accurate conclusions which will greatly assist in the formulation of guidelines for future policy. The paper provides a general discussion of remittances in the context of Bangladesh. Laying down the analytical framework of the study with clarification on methodology, it draws on a positive impact of remittances on per capita incomes, and finds out that it contributes approximately up to 18 per cent towards a decline in poverty status. Finally, the paper presents a few policy implications that this study bears.
Contributor: M W R Khan
Publication Period: November 2008