REMITTANCE AND HOUSEHOLD WELFARE IN RURAL BANGLADESH: A MICRO-ECONOMETRIC ANALYSIS

This paper investigates the impact of remittance earning on household welfare with the help of their changing consumption pattern in rural areas of six districts under Barisal Division, a south-central region of Bangladesh. Simple random sampling technique has been applied to select the study area and sample. With a view to pursuing the research objective, descriptive analysis, Pearson’s correlation analysis, student t-test, Ordinary Least Squares (OLS) and Quantile Regression (QR) approach have been used for getting more comprehensive picture and a multitude of estimates. Results from the analysis demonstrate that microeconomic factors like source of drinking water, housing and sanitation condition of the household have been positively influenced by remittance earnings over a five-year time period. Besides, positive correlation between household remittance earnings and household consumption behavior has been found statistically significant. In addition, estimated results from regression model shows that variables labeled total family member, income from both remittance and except remittance and household healthcare cost affect their consumption expenditure positively and significantly. Findings from the study are helpful for the concerned policy makers to take appropriate policy initiatives to increase remittance inflow for household welfare improvement and rural economic transition in Bangladesh.