DOI: 10.36347/sjahss.2021.v09i09.013

Pages: 462-470

This research examines the impact of remittances on the economic progress of developing countries such as Bangladesh, which receives significant amount of remittance. To investigate this, we used a time series analysis to undertake an empirical study for Bangladesh from 1995 to 2016. Several time series techniques are used in this work, including the Johansen–Juseliues test and the Granger causality test. We discovered that in the long run, overseas remittances have a greater impact on economic growth (per capita GDP). There also exists a unidirectional causality among the variables such as foreign remittances and domestic investment. In the coming days, we recommend that the Bangladesh government be cautious and smart in preserving bilateral and multilateral relationships with donor organizations and countries, with a particular focus on achieving the Sustainable Development Goals (SDGs).