| Peer-Reviewed

The Impact of International Remittances on Education and Health in Bangladesh

Received: 21 April 2019     Accepted: 4 June 2019     Published: 18 June 2019
Views:       Downloads:
Abstract

Over last few decades international remittances are playing a vital role in the socio-economic development of the developing countries like Bangladesh. Remittance contributes not only in household level but also in community and national level of a country. Although many studies have been carried out on poverty, growth, inequality, unemployment impact of remittances, impact of international remittances on education and health in Bangladesh has not been studied yet. Therefore, this study explores the impact of international remittances on education and health in Bangladesh. In achieving the objective, the study uses primary data collected from 396 households and applies both statistical and econometric methods. Firstly, the study uses statistical approach to bring to light the core scenario of education and health conditions of the households. Secondly, the study separately applies linear regression model estimated through OLS method to examine the impact of international remittances on education and health. The study finds that international remittances have negative and significant impact on education while international remittances have positive and significant on health. This paper finds that if the households receive remittance, the per capita expenditure on health may be increased by Tk. 4817.39 and the per capita expenditure on education may be decreased by Tk. 1020.67. Therefore, the study suggests government and non-government organizations nursing international remittances to improve households’ health.

Published in International Journal of Science and Qualitative Analysis (Volume 5, Issue 1)
DOI 10.11648/j.ijsqa.20190501.12
Page(s) 6-14
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), 2019. Published by Science Publishing Group

Keywords

International Remittances, Education, Health, Bangladesh

References
[1] UNDESA (2017). International Migration Report 2017. doi: ST/ESA/SER.A/404.
[2] International Organization for Migration (IOM). (2017). World Migration Report 2018. Retrieved from: https://publications.iom.int/system/files/pdf/wmr_2018_en.pdf.
[3] Bayes, A., Hossain, M., and Rahman, A. M. (2015, November 17). Remittances and poverty alleviation. Retrieved from http://dspace.bracu.ac.bd:8080/xmlui/bitstream/handle/10361/4744/Remittances and povertyalleviation17_nov_2015. pdf?sequence=1.
[4] OECD. (2017). International Migration Outlook 2017. doi: 10.1787/migr_outlook-2017-en.
[5] BMET. (2018). Overseas Employment and Remittances from 1976-2018. Retrieved from: http://www.bmet.org.bd/BMET/ stattisticalDataAction.
[6] Kumar, R. R., Stauvermann, P. J., Kumar, N. N., and Shahzad, S. J. H. (2018a). Revisiting the threshold effect of remittances on total factor productivity growth in South Asia: a study of Bangladesh and India. Applied Economics, 50 (26), 2860-2877. doi: 10.1080/00036846.2017.1412074.
[7] Calero, C., Bedi, A. S., and Sparrow, R. (2009). Remittances, liquidity constraints and human capital investments in Ecuador. World Development, 37 (6), 1143-1154. doi: 10.1016/j.worlddev.2008.10.006.
[8] Nguyen, C. V., and Nguyen, H. Q. (2015). Do internal and international remittances matter to health, education and labor of children and adolescents? The case of Vietnam. Children and Youth Services Review, 58, 28–34. doi: 10.1016/j.childyouth.2015.09.002.
[9] Chaaban, J., and Mansour, W. (2012). The impact of remittances on education in Jordan, Syria and Lebanon. Economic Research Forum Working Paper No. 684, 69–98. Retrieved from: http://erf.org.eg/publications/.
[10] Phuyal, R. K., Dhakal, R. C., and Koirala, A. (2016). Remittances and household expenditure patterns of selected families in Kathmandu remittances and household expenditure patterns of selected families in Kathmandu valley. Regional Development Studied, 48 (2), 67–87. Retrieved from: http://www.uonbi.ac.ke/node/878.
[11] Edwards, A. C., and Ureta, M. (2003). International migration, remittances, and schooling: Evidence from El Salvador. Journal of Development Economics, 72 (2), 429-461. doi: 10.1016/S0304-3878(03)00115-9.
[12] Amuedo-Dorantes, C., and Pozo, S. (2011). New evidence on the role of remittances on healthcare expenditures by Mexican households. Review of Economics of the Household, 9 (1), 61-98. doi: 10.1007/s11150-009-9080-7.
[13] Valero-Gil, J. (2009). Remittances and the household’s expenditures on health. Journal of Business Strategies, 29 (1): 119-140. Retrieved from: http://eprints.uanl.mx/id/eprint/7523.
[14] Adams, R. H. J., and Cuecuecha, C. (2010). The economic impact of international remittances on poverty and household consumption and investment in Indonesia. World Bank Policy Research Working Paper (No. 5433). doi: 10.1596/1813-9450-5433.
[15] Kumar, B., Hossain, M. E. and Osmani, M. A. G. (2018b). Utilization international remittances in Bangladesh. Remittances Review, 3 (1), 5-18. Available at: https://journal.tplondon.com/index.php/rem/article/view/986.
[16] Amuedo-dorantes, C., Bansak, C., and Pozo, S. (2005). On the Remitting Patterns of Immigrants: Evidence from Mexican Survey Data. Federal Reserve Bank of Atlanta Economic Review, 90 (1), 37-58. Retreived from: https://www.frbatlanta.org/
[17] Adams, R. H., and Page, J. (2005). Do international migration and remittances reduce poverty in developing countries?. World Development, 33 (10), 1645-1669. doi: 10.1016/j.worlddev.2005.05.004.
[18] Bansak, C., Chezum, B., and Giri, A. (2015). Remittances, school quality, and household education expenditures in Nepal. IZA Journal of Migration, 4 (1), 16. doi: 10.1186/s40176-015-0041-z.
[19] Dhungana, A. R., and Pandit, D. (2014). Socio-economic impact of remittance on households in Lekhnath municipality, Kaski, Nepal. Economic Literature, 12, 39-49. doi: 10.3126/el.v12i0.14886.
[20] Tabuga, A. D. (2007). International remittances and household expenditures: the Philippine Case. Discussion Paper Series No. 2007-18. Retrieved from: https://dirp3.pids.gov.ph/ris/dps/ pidsdps0718.pdf.
[21] Adams, R. H., and Cuecuecha, A. (2013). The impact of remittances on investment and poverty in Ghana. World Development, 50, 24-40. doi: 10.1016/j.worlddev.2013.04.009.
[22] Ratha, D. (2013). The impact of remittances on economic growth and poverty reduction. Policy Brief, 8, 1-13. doi: 10.1177/056943451005500210.
[23] Kanaiaupuni, S. M., and Donato, K. M. (1999). Migradollars and mortality: the effects of migration on infant survival in Mexico. Demography, 36 (3), 339-353. doi: 10.2307/2648057.
[24] Acosta, P. (2006). Labor supply, school attendance, and remittances from international migration: the case of El Salvador. World Bank Policy Research Working Paper (No. 3903). doi: 10.1596/1813-9450-3903.
[25] Acosta, P., Calderón, C., Fajnzylber, P., and Lopez, H. (2008). What is the impact of international remittances on poverty and inequality in Latin America? World Development, 36 (1), 89-114. doi: 10.1016/j.worlddev.2007.02.016.
[26] Cordova, E. P. (2005). Globalization, migration and development: the role of mexican migrant remittances. Economia, 6 (1), 217-256. Retrieved from: https://www.jstor.org/stable/20065489.
[27] McKenzie, D., and Rapoport, H. (2011). Can migration reduce educational attainment? Evidence from Mexico. Journal of Population Economics, 24 (4), 1331-1358. doi: 10.1007/s00148-010-0316-x.
[28] Antman, F. M. (2011). The intergenerational effects of paternal migration on schooling and work: What can we learn from children’s time allocations? Journal of Development Economics, 92 (2), 200-208. doi: 10.1016/j.jdeveco.2010.11.002.
[29] Lee, L., and Park, A. (2010). Parental migration and child development in china (working paper). Gansu Survey of Children and Families. Retrieved from https://repository. upenn.edu/cgi/viewcontent.cgi?article=1023andcontext=gansu_papers.
[30] Mansoor, A., and Quillin, B. (2006). Migration and remittances: Eastern Europe and the Former Soviet Union. Retrieved from http://siteresources.worldbank. org/INTECA/Resources/2578961167856389505/Migration_FullReport.pdf.
[31] Adams, R. H. (2011). Evaluating the economic impact of international remittances on developing countries using household surveys: A literature review. Journal of Development Studies, 47 (6), 809–828. doi: 10.1080/00220388.2011.563299.
[32] Olowa, O. W., and Awoyemi, T. T. (2009). Remittances and household expenditure in rural Nigeria. Journal of Rural Economics and Development, 20 (1), 30–43. Retrieved from https://ideas.repec.org/s/ags/ngjred.html.
[33] Ponce, J., Olivié, I., and Onofa, M. (2011). The role of international remittances in health outcomes in Ecuador: Prevention and response to shocks. International Migration Review, 45 (3), 727-745. doi: 10.1111/j.1747-7379.2011.00864.x.
[34] Démurger, S., and Wang, X. (2016). Remittances and expenditure patterns of the left behinds in rural China. China Economic Review, 37, 177–190. doi: 10.1016/j.chieco.2015.12.002.
[35] Thapa, S., and Acharya, S. (2017). Remittances and household expenditure in nepal: evidence from cross-section data. Economies, 5 (2), 16. doi: 10.3390/economies5020016.
[36] Amuedo-Dorantes, C., Sainz, T., and Pozo, S. (2007). Remittances and healthcare expenditure patterns of populations in origin communities: evidence from Mexico. Integration and Trade, 25, 1-23. Retrieved from https://publications.iadb.org/handle/11319/2620.
[37] Hassan, G., and Shakur, S. (2017). Nonlinear effects of remittances on per capita gdp growth in Bangladesh. Economies, 5 (3), 25. doi: 10.3390/economies5030025.
[38] Hatemi-J, A., and Uddin, G. S. (2014). On the causal nexus of remittances and poverty reduction in Bangladesh. Applied Economics, 46 (4), 374-382. doi: 10.1080/00036846.2013.844331.
[39] Khan, Z. S., and Islam, S. (2013). The Effects of remittances on inflation: evidence from Bangladesh. Journal of Economics and Business Research, 19 (2), 198–208. Retrieved from: http://www.uav.ro/jour/index.php/jebr/article/view/94.
[40] Regmi, M., and Paudel, K. P. (2016). Impact of remittance on food security in Bangladesh. Frontiers of Economics and Globalization, 16, 145-158. doi: 10.1108/S1574-871520150000016006.
[41] Wadood, S. N., and Hossain, M. A. (2017). Microeconomic impact of remittances on household welfare: Evidences from Bangladesh. Business and Economic Horizons, 13 (1), 10-29. doi: 10.15208/beh.2017.02.
[42] 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. doi: 10.12691/jfe-2-4-5.
[43] Raihan, S., Khondker, B. H., Sugiyarto, G. and Jha, S. (2009). Remittances and household welfare: a case study of Bangladesh. ADB working paper. No. 189. Retrieved from: https://www.adb.org/sites/default/files/publication/28402/economics-wp189.pdf.
[44] 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. doi: 10.11648/j.ijes.20190301.15.
[45] Kumar, B. (2019). The impact of international remittances on poverty alleviation in Bangladesh. Remittances Review, 4 (1), 67-86. Retrieved from: https://journals.tplondon.com/ index.php/rem/article/ view/665.
Cite This Article
  • APA Style

    Bezon Kumar. (2019). The Impact of International Remittances on Education and Health in Bangladesh. International Journal of Science and Qualitative Analysis, 5(1), 6-14. https://doi.org/10.11648/j.ijsqa.20190501.12

    Copy | Download

    ACS Style

    Bezon Kumar. The Impact of International Remittances on Education and Health in Bangladesh. Int. J. Sci. Qual. Anal. 2019, 5(1), 6-14. doi: 10.11648/j.ijsqa.20190501.12

    Copy | Download

    AMA Style

    Bezon Kumar. The Impact of International Remittances on Education and Health in Bangladesh. Int J Sci Qual Anal. 2019;5(1):6-14. doi: 10.11648/j.ijsqa.20190501.12

    Copy | Download

  • @article{10.11648/j.ijsqa.20190501.12,
      author = {Bezon Kumar},
      title = {The Impact of International Remittances on Education and Health in Bangladesh},
      journal = {International Journal of Science and Qualitative Analysis},
      volume = {5},
      number = {1},
      pages = {6-14},
      doi = {10.11648/j.ijsqa.20190501.12},
      url = {https://doi.org/10.11648/j.ijsqa.20190501.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsqa.20190501.12},
      abstract = {Over last few decades international remittances are playing a vital role in the socio-economic development of the developing countries like Bangladesh. Remittance contributes not only in household level but also in community and national level of a country. Although many studies have been carried out on poverty, growth, inequality, unemployment impact of remittances, impact of international remittances on education and health in Bangladesh has not been studied yet. Therefore, this study explores the impact of international remittances on education and health in Bangladesh. In achieving the objective, the study uses primary data collected from 396 households and applies both statistical and econometric methods. Firstly, the study uses statistical approach to bring to light the core scenario of education and health conditions of the households. Secondly, the study separately applies linear regression model estimated through OLS method to examine the impact of international remittances on education and health. The study finds that international remittances have negative and significant impact on education while international remittances have positive and significant on health. This paper finds that if the households receive remittance, the per capita expenditure on health may be increased by Tk. 4817.39 and the per capita expenditure on education may be decreased by Tk. 1020.67. Therefore, the study suggests government and non-government organizations nursing international remittances to improve households’ health.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - The Impact of International Remittances on Education and Health in Bangladesh
    AU  - Bezon Kumar
    Y1  - 2019/06/18
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ijsqa.20190501.12
    DO  - 10.11648/j.ijsqa.20190501.12
    T2  - International Journal of Science and Qualitative Analysis
    JF  - International Journal of Science and Qualitative Analysis
    JO  - International Journal of Science and Qualitative Analysis
    SP  - 6
    EP  - 14
    PB  - Science Publishing Group
    SN  - 2469-8164
    UR  - https://doi.org/10.11648/j.ijsqa.20190501.12
    AB  - Over last few decades international remittances are playing a vital role in the socio-economic development of the developing countries like Bangladesh. Remittance contributes not only in household level but also in community and national level of a country. Although many studies have been carried out on poverty, growth, inequality, unemployment impact of remittances, impact of international remittances on education and health in Bangladesh has not been studied yet. Therefore, this study explores the impact of international remittances on education and health in Bangladesh. In achieving the objective, the study uses primary data collected from 396 households and applies both statistical and econometric methods. Firstly, the study uses statistical approach to bring to light the core scenario of education and health conditions of the households. Secondly, the study separately applies linear regression model estimated through OLS method to examine the impact of international remittances on education and health. The study finds that international remittances have negative and significant impact on education while international remittances have positive and significant on health. This paper finds that if the households receive remittance, the per capita expenditure on health may be increased by Tk. 4817.39 and the per capita expenditure on education may be decreased by Tk. 1020.67. Therefore, the study suggests government and non-government organizations nursing international remittances to improve households’ health.
    VL  - 5
    IS  - 1
    ER  - 

    Copy | Download

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

  • Sections