Assessing the efficacy of cash incentive policies in enhancing remittance inflows: Evidence from Bangladesh
Muhammad Nafis Shahriar Farabi, Mahadee Al Mobin, Asir Newaz Khan
TL;DR
This study evaluates how cash incentives in Bangladesh affected remittance inflows, finding a significant increase after the policy was introduced.
Contribution
This is the first study to apply ITS analysis in migration studies in Bangladesh and to examine region-wise efficacy of remittance policies.
Findings
The cash incentive led to an immediate and sustained increase of 6.68% in remittance inflows.
Region-wise analysis showed the highest impact in the USA & UK and lowest in the Middle East.
The policy's effectiveness is linked to factors like hundi market prevalence and remittance costs.
Abstract
The Government of Bangladesh (GoB) first implemented the cash incentive of 2 percent in July 2019 and continued the scheme with some modifications amid the pandemic to enhance remittance inflows through formal channels and ensure macroeconomic stability in the country. This study examines the impact of the cash incentive introduced by the GoB to boost remittance inflow using the Interrupted Time Series (ITS) analysis along with the Chow test for structural stability. While ITS analysis has been employed by numerous studies in the healthcare sector, but this paper uses such analysis for the first time in any type of migration study in Bangladesh. We have used ITS as it is most effective in measuring the impact of policy interventions that are expected to act either quickly after an intervention or within a stipulated time frame. The study is also the first to examine the region wise…
Genes, proteins, chemicals, diseases, species, mutations and cell lines named across the full text — each resolved to its canonical identifier and authoritative record.
Click any figure to enlarge with its caption.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Figure 8
Figure 9
Figure 10
Figure 11
Figure 12
Figure 13
Figure 14
Figure 15
Figure 16
Figure 17
Figure 18
Figure 19
Figure 20
Figure 21
Figure 22
Figure 23
Figure 24
Figure 25
Figure 26
Figure 27
Figure 28
Figure 29Peer Reviews
No public reviews on file for this paper yet. If you reviewed it on a platform where reviews are public (OpenReview, ICLR, NeurIPS, ICML), you can paste yours below so the community can read it here.
Videos
No videos yet. Explain this paper in a talk, walkthrough, or lecture? Add one.
Taxonomy
TopicsMigration and Labor Dynamics · Employment and Welfare Studies · Fiscal Policy and Economic Growth