Foreign Remittances and household welfare in seleted areas of sylhet region in Bangladesh

Abstract

This research examines the utilization pattern of foreign remittances, its impact on household welfare and channels of receiving foreign remittances in selected areas of Sylhet region in Bangladesh mainly based on the primary data collected from 8 villages of Osmani Nagar Upazila of Sylhet District and Sadar Upazila of Moulvibazar District under Sylhet division. The size of sample was 104 taking 52 remittance receiving households from each Upazila by applying random sampling technique. Descriptive statistics and econometric models were used to analyze the collected data. The findings of the study exhibits that about 31 and 30 percent of emigrant worked as a restaurant waiter or cook in different Bangladeshi restaurant located abroad specially in the United Kingdom among low and middle income groups respectively whereas in high income group, most of the emigrant workers (26.32 percent) were involved in business. A significant number of remittance receiving households possessed agricultural land but they had been transforming their profession from farming to business. Foreign remittances were the prime source of household income and the household members were mainly dependent on it for their livelihood. The study ascertained that about 21 percent of foreign remittances were spent for purchasing food. A remarkable portion (18.20 percent) was spent for consumable and durable goods and a slightly lower portion (16.01 percent) for housing and land improvements. The remittance receiving households were also spent a small portion (9.78 percent) for investment and savings and only 5.58 percent of foreign remittances was spent for education. The results of statistical test and econometric techniques examined that inflow of foreign remittances made positive and significant changes on housing condition, sources of drinking water and sanitation facilities, household accessories, education and health status of household members, household economic condition and household expenditure. Money transfer agencies were found to be the most efficient channel of receiving foreign remittances. A significant amount was also received through the bank account. Mobile banking as a channel of receiving foreign remittances is now getting popularity among the households for its easy, convenient and fastest transaction. In a nutshell, the study revealed that foreign remittances had positive and significant impact on household welfare. Therefore, in the light of this study, the government can adopt proper policies to export more manpower after providing skilled training and create more job opportunities in different countries of the world in order to bring more welfare at household and community level in Bangladesh.