The Micro Level Impact of Foreign Remittances on Incomes in Bangladesh – A Measurement Approach Using the Propensity Score

M W R Khan
JEL codes: 
Centre for Policy Dialogue Paper 73

The importance of foreign remittances in the economy of Bangladesh is widely recognised and requires little reiteration. Along with the readymade garment (RMG) sector and non-farm activities in the agricultural sector, remittances have been identified as one of the three key factors that have been responsible for reducing the overall incidence of poverty in Bangladesh (Osmani 2004). The volume of remittances from
Bangladeshi migrant workers exceeded USD 4 billion in early 2007 (the Daily Star, 27 February 2007), a figure which dwarfs the amount of yearly foreign direct assistance received by the country.