Vol.: 01 Issue: 01 : Business and Non- Business Uses of Individual Foreign Remittances in Bangladesh

Zulfiqar Hasan

PhD, Associate Professor, Department of Business Administration, Bangladesh Islami University, Dhaka. Email: [email protected]

Keywords

Business Uses of Remittance, Business Organization, Non-profit Organization, Foreign Remittance, Non-resident Bangladeshi, Households, Expenditures, Festivals.

JEL Classification:

F38, G51

Abstract

The study attempts to identify the uses of foreign remittance in Bangladesh's business and non-business sectors. The researcher uses different financial and statistical techniques. A structured interview schedule is designed to collect the primary data. The study finds that almost 77% of remittance users do not use remittances in business sectors. A huge number of users (54.9%) are unemployed and housewives; hence, they only spend remittance purchasing daily necessities, luxuries, fashionable items, etc. Only 23% of remittances are used in the business and investment sectors. There is a negative correlation between business uses and non-business uses of remittance. Finally, the study recommends that both senders of remittance and the government should motivate the remittance receivers to save and invest a portion of remittance in business sectors for economic development. Remittance receivers should control their expenses for unnecessary or least required items.