Evaluating the Influence of Remittance Inflow on the Health and Education Sector for Local Households
Abstract
Purpose. The article investigates the extent to which international remittances influence household investment in education and health in Bangladesh, comparing remittance-receiving and non-receiving households. The study aims to determine whether remittances act as a catalyst for human capital development at the microeconomic level.
Method. The research adopts an explanatory mixed-method design. Primary data were collected from 400 rural households through a multistage random sampling survey in Hathazari Upazila. Econometric analysis was conducted using multiple regression and Seemingly Unrelated Regression (SUR) models to measure the impact of demographic, economic, and social variables on household investment patterns.
Findings. Results show that remittances significantly increase spending on education and health. Age, education level, and gender of the household head, household size, dependency ratio, migrant’s duration abroad, and income level all shape investment decisions. Remittance-receiving households allocate more funds to improving human capital than non-receiving families, demonstrating remittances’ positive welfare effect.
Theoretical implications. The study reinforces the remittance-led development hypothesis, providing micro-level evidence that migrant transfers contribute to household-level socio-economic upgrading.
Practical implications. Policy measures should focus on formalising remittance flows, integrating migrants into financial systems, and designing incentives for productive investment in education and healthcare.
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