Does remittance fuel labour productivity in Bangladesh? The application of an asymmetric non-linear ARDL approach |
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| Authors: | Md Al Mamun Kazi Sohag Nahla Samargandi Farida Yasmeen |
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| Institution: | 1. Department of Economics and Finance, La Trobe University, Bundoora, Australia;2. Faculty of Business and Economics, East West University, Dhaka, Bangladesh;3. Faculty of Social Science &4. Humanities, National University of Malaysia, Bangi, Malaysia;5. Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Saudi Arabia;6. Faculty of Business and Economics, East West University, Dhaka, Bangladesh |
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| Abstract: | Bangladesh, a labour-abundant country, is finally learning to reap gains from her labour abundance. The historical under-optimized capital–labour ratio of Bangladesh is slowly moving towards its optimum as the migration of its labour force and consequent inflow of remittance strategically converts its abundant labour into capital. Though the fear that remittance as an alternative source of earning may result in Dutch disease for existing family members; annual data for 1982–2013 and through applying standard testing methodologies, our empirical findings suggest that such a fear is not valid since remittance flow significantly improves domestic labour productivity in Bangladesh in the long run. |
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| Keywords: | Bangladesh labour productivity remittance non-liner ARDL |
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