The Impact of International Remittances on Education and Health in Bangladesh

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.