Remittances and Economic growth: Empirical evidence from Bangladesh

The main objective of this book is to examine the link between remittances and economic growth in Bangladesh based on annual time series data ranges from 1976 to 2011. Using Granger causalities under Vector Autoregression (VAR) methodology to investigate the six possible directions that might link remittances and economic growth, trade and economic growth; and inflation and economic growth. We found bi-directional causality between remittances and economic growth, uni-directional causality between inflation and economic growth and no causality between trade and economic growth. In short period using impulse response functions, shocks on remittance growth could help to explain the effects on economic growth and similarly shocks on economic growth could help to explain the remittances growth in Bangladesh.