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Socioeconomic Impacts of Remittances: A Comparative Study of Bangladesh and Vietnam

Socioeconomic Impacts of Remittances: A Comparative Study of Bangladesh and Vietnam

Volume 3 Number 1, Spring 2012 pp. 110-139(30)
Research Article
2012/3/1
Barai, Munim Kumar
Remittance inflows are growing rapidly in Bangladesh and Vietnam and the ensuing economic and social impacts of remittances are being increasingly viewed with importance. In Bangladesh, remittances have helped improve socioeconomic indicators like nutrition, living conditions and housing, education, healthcare, social security and investment of the recipient households. There have also been positive effects on poverty reduction, the balance of payments current account balance, and GDP creation. In Vietnam, similarly, remittances have increased household income and national output, but are also seen to have contributed to inequality and inflation. Notably, the relative weight of remittances has increased against some of the major macroeconomic variables in both the countries. They have been able, however, to avoid appreciation of the real exchange rate of their currencies as a 'Dutch Disease' effect of remittance inflows and the consequent effects on their export trade.
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