Socio-Economic Impact of Foreign Remittance in Bangladesh

Abstract

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. Moreover, it is greater than foreign aid and thus helps in lessening dependence on foreign aid remittance gets momentum in recent time in Bangladesh and is the second largest sector of foreign exchange earning after the garment; sector. If cost of imported raw materials is deducted from the foreign exchange earning of the garments sector, remittance becomes the sign: largest sector of foreign exchange earning. Remittance earning ; increasing day by day but at a lower rate than the increase in emigration from Bangladesh due to the increasing share of unskilled or semi-skilled labors than the