Rural Household Contribution to the Financial and Capital Market in Bangladesh: A Micro Level Study of Remittances from Italy

Author(s)

Kazi Abdul Mannan , Dr. Khandaker Mersh eda Farhana , Torab Ahmed Khan Chowdhury ,

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Volume 3 - October 2014 (10)

Abstract

The present study investigates the investment variation of remittance determinants in rural area at the origin. Using micro-economic data from a survey conducted in 2013, multivariate analysis was carried out on 300 rural households. The empirical results show that the significance level and determinants vary from the investment in financial sector and specially investment in share market. Investment in financial sectors is strongly significance with the household remittances, educational level of migrants and household heads, household head relation to migrant and income of the household. On the other hand, investment in share market is highly significant with the duration of migration, marital status and employment status of the household head; and religion and income of the household. 

Keywords

capital market, remittances, investment, rural household, non-residence JEL Classification: A12, C51, D19, E00, G00, H63, J00, R00

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