Impact of COVID-19 Pandemic on Foreign Remittance Beneficiaries in Bangladesh

Abstract

The global economy has halted due to the coronavirus pandemic, leaving thousands of migrant Bangladeshi workers jobless and creating pressure on foreign exchange reserves. Remittance is multiple sources to influence the national economy. Additionally, remittances directly affect the lives of the migrants’ families as remittances increase consumption and help investment, education, health, and other productive activities. Remittances have impacted the social status of the families of migrants by improving the lifestyle, sending children to standard educational institutions and helping them to explore new income generating activities. The main purpose of this study is to assess the impact of COVID-19 pandemic on foreign remittance beneficiaries’ buying behavior and living standard in Bangladesh. This study has been used quantitative research method mainly a survey technique. Questionnaire were designed by using Likert scale for collecting data from the respondents. Total 385 sample has taken and sample size were determined by using statistical method. Descriptive statistics, McNamara chi-square test, Economic situation index (ESI), Ordinary least square (OLS) regression was used as a data analysis tools. Conclusion was drawn based on the findings of the study.

The study concludes that COVID-19 pandemic has a direct financial, social, and psychological impact on remittance beneficiaries. The result also shows that the amount of remittance inflow was severely reduced during this period of time. As a result, householder’s expenditure is badly affected.

Key words:  COVID-19, Foreign remittance, Households, Living standard

DOI: 10.7176/JESD/13-14-09

Publication date:July 31^st 2022