Remittance, migration and impacts on economy
Uploaded by ssourov on Dec 04, 2015
Abstract:
This paper has assessed the pattern of migration, socio-economic benefit and impact of the remittances earned by the expatriate workers. It has analyzed the use of remittance and contribution to the national economy of Bangladesh. In Bangladesh, remittance is one of the most important economic variables in recent times as it helps in balancing balance of payments, increasing foreign exchange reserves, enhancing national savings and increasing velocity of money. For about two decades remittance has been contributing around 35% of export earning. Remittance has created a new dimension in the economic development of Bangladesh. We have to properly unlock the potentialities of remittances and utilize it properly to make it an indispensable tool of the economic development of Bangladesh.
Key words: Remittance, Investment, Balance of payments.
Introduction:
Bangladesh like other South-Asian countries is in a situation of surplus manpower with a combination of professional, skilled, semi-skilled and less-skilled labor force. Local wage employment cannot absorb the huge low skilled and less educated workforce. This large volume of workforce needs to be engaged in employment to ensure their participation in the economic development of the countries as well to improve their family standard. Migration plays a vital role in the national economy mainly in two major ways;
Firstly it reduces unemployment and secondly migration results in remittance flows for the country.
The migration has shown steady growth over the year that is favorable to the development of Bangladesh; as inflow of remittance has increased every year. The links between migration and remittances are self evident. Both have a strong co-relation to poverty reduction in home countries. Remittance has become an important aspect for the developing countries like Bangladesh for socioeconomic advancement. Remittance has a significant role to maintain balance of payment and to enrich foreign currency reserve. It also has a great contribution in Gross Domestic Product (GDP) of the country. Migration is gradually being considered as the development alternative to the family level of workers particularly the illiterate and un-skilled workforce.
Migration from Bangladesh:
Migration has become an important livelihood strategy for the people of Bangladesh. It has remarkable positive impact on social development and empowerment through skill transfer and by fostering many community development initiatives. Bangladesh has a long history of international migration. During British rule some people migrated to UK and also USA for trade and higher study. But after independence of Bangladesh in 1971, the flow of migration to other countries also increased....