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- W2152467548 abstract "The magnitude of the flo w of remittances to a developing country like Bangladesh and their rate of growth has become a significant factor in its economy. The huge flow of remittances affects the production sector and emp loyment structure, as well as the scale of external trade co mpetitiveness of the economy as measured by the real exchange rate (RER). Movement of the RER fro m its equilibriu m position is very important and is also crucial in identify ing the factors most influencing this movement. Using Johansen cointegration and Vector Error Correction models, this study has found that the flow o f remittances is appreciating the RER and decreasing the external trade co mpetitiveness of Bangladesh; thus, the procedure is slowly bringing about deterioration in the economy of Bangladesh, a process known as Dutch Disease. To counter this, a gradual relaxation of the trade barrier plus promot ion of external trade diversificat ion and diversion of the remittances flow fro m non-tradable sectors to priority investment areas will counteract the adverse consequences of remittances on the Bangladeshi economy in the long run." @default.
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- W2152467548 date "2013-01-01" @default.
- W2152467548 modified "2023-09-22" @default.
- W2152467548 title "Macroeconomic Impact of Remittances and the Dutch Disease in a Developing Country" @default.
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