Purposes: This study investigates the dual role of remittances in fostering
macroeconomic growth (proxied by GDP) and reducing household poverty in
Bangladesh, with a focus on Jhenaidah district. It aims to bridge the gap between
national-level economic trends and localized poverty dynamics, offering intutions
into how remittance inflows catalyze development at both macro and micro levels.
Methodology: This study combined macro- and micro-level analyses:
econometric techniques (Unit Root, Johansen cointegration, Granger Causality)
assessed remittance-GDP linkages using secondary data obtained from world
development indicator (WDI), while primary data from 100 households in two
upazilas of Jhenaidah district were evaluated via the Cost of Basic Needs (CBN)
approach (poverty lines) and Foster-Greer-Thorbecke (FGT) index (incidence,
depth, severity).
Findings: Micro-level data confirms that remittances significantly increased
incomes and expenditures, reducing poverty incidence (38% under the upper
poverty line vs. 25% under the lower line), depth (18% vs. 11.3%), and severity
(5.1% vs. 2.4%) while Johansen cointegration analysis revealed a stable long-term
equilibrium between remittances and GDP. Furthermore, Granger causality tests
demonstrated unidirectional causality: remittances Granger-cause GDP growth (p
= 0.04 at the 5% significance level), while GDP does not Granger-cause
remittance flows.
Practical Implications: The findings advocate for policies that strengthen
financial inclusion mechanisms to direct remittances as a catalyst for household
resilience and macroeconomic stability by integrating migration strategies into
national poverty-alleviation frameworks.
Originality/Value: This study uniquely integrates macroeconomic and
household-level analyses to demonstrate how remittances simultaneously fuel
national growth and empower vulnerable communities.
Limitations: The household sample (n=100) and single-district focus limit
generalizability.
" 
