Macro Determinants of Remittance : Relationship Between Remittance and Economic Growth in Bangladesh

This paper examine the relation from remittances and trade to economic growth. Study applied time series econometric techniques; unit root, co-integration and error correction mechanism (ECM) to examine long-run and short-run association between dependent and independent variables during the period of 1976 to 2016. The results confirms a long-run relationship between remittance, trade and economic growth whereas no short-run causal relationship exists between remittances and economic growth, but trade shows significant influence even in the short run in GDP during the study period. It is expected that the findings would be useful to government and policy makers for internal policy formation in the area of utilization of remittance management of migration from Bangladesh