Title : Did Remittance Inflow in Bangladesh Follow the Gravity Path during COVID-19?

Authors : Gour Gobinda Goswami, Munim Kumar Barai, Mahnaz Atique, Mostafizur Rahman

Abstract : Remittances are one of the major driving forces of economic growth in Bangladesh. The main objective of the paper is to empirically investigate the effect of COVID-19 on the remittance inflow to Bangladesh using a gravity-model framework. We have employed monthly data of remittance inflow to Bangladesh from January 2018 to September 2022 with its top twelve partners, namely the Kingdom of Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Libya, the United Kingdom, Italy, Malaysia, Singapore, and Japan. Using the Gravity equation, we tapped the COVID-19 dummy as the critical variable of our interest, along with COVID transmission, COVID mortality, and COVID vaccination data at home and abroad. Using Poisson Pseudo Maximum Likelihood (PPML), fixed-effects (FE), and random-effect (RE) estimations, we find that during the COVID-19 pandemic, remittance inflow to Bangladesh increased significantly after controlling for other Gravity variables.

Journal : Economies Volume : 11 Year : 2023 Issue : 11
Pages : 285 City : Edition : Editors :
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