IMPACT OF FOREIGN REMITTANCE ON THE ECONOMIC

DEVELOPMENT OF BANGLADESH

Prepared for
Jannatul Ferdaous
Lecturer
School of Business Studies, SEU

Prepared by
Name Id. No.
Md. Ahsan Habib 2007110000224
Md. Nazmul Hossain 2007110000225
Rokeya Khatun 2007110000230
Program: BBA
Batch- 16; Section- C
School of Business Studies, SEU

Date of submission: December 30, 2010

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 SOUTHEAST
UNIVERSITY
S C H O O L O F B US I N E S S S T U D I E S
LETTER OF TRANSMITTAL

Date: December 30, 2010

To,
Jannatul Ferdaous
Lecturer
School of Business Studies, SEU

Subject: Submission of Term Paper.

Madam,
We are highly delighted to submit our Term Paper in complete form. This report is an integrated
part of our BBA (Finance) program and this report is enriched with our academic background
which will be helpful to enter into the professional world. To prepare this report we tried our
level best to accumulate relevant information from all authentic sources. It will be highly hearten
able if you are kind to receive this Term Paper.

For the completion of this report we tried hard & soul to follow the guidelines given by you. We
are very much thankful that you have given us the opportunity to prepare this report under your
supervision and hope that this report will meet the standards of your verdict.

Sincerely yours,

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(Md. Ahsan Habib)
On the behalf of the group

ACKNOWLEDGEMENT

At first we to express our gratefulness to our honorable course instructor of “foreign exchange
dealing and international banking” Jannatul Ferdaous, Lecturer, School of Business Studies,
SEU. Without whose support and encourage this assignment would not have been possible.

We have done this work with a great deal of certain explanations, facts, graph, chart and
information to make a detail analysis. This kind of analysis gives us an opportunity to acquire in
depth knowledge about foreign remittance, its channel and its use and its impact on economy of
our country.

Assigning Topic Mainly based on foreign remittance which we get from wage earners who work
in abroad and exporting goods in different countries as well. This study may help us to know
about the countries we receive the remittance, the amount of remittance we receive every year,
usage of remittance by our country people, and its impact on our country’s economy. This term
paper has been some mistake due to our limited ability and time constraints. In this regards, we
seek your kind consideration as we are in the process of learning.

Once again we convey our endless thanks to our course teacher & look forward his support and
cooperation in the future as well.

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 EXECUTIVE SUMMERY

Foreign remittance is money remitted in foreign currency. That means transfer of fund from one
place to another place in foreign currency. International remittances are the portion of migrant
workers’ earnings sent back from the country of employment to the country of origin.

Foreign remittance can be inward and outward. Remittance in foreign currency that comes in the
country is inward foreign remittance and remittance in foreign currency that goes out abroad is
outward foreign remittance. Migrants use different methods in sending remittance involving both
official and unofficial channels. Officially, transfer of remittance takes place through demand
draft issued by a bank or an exchange house; travelers’ checks; telegraphic transfer; postal order;
account to account transfer; automatic teller machine (ATM) facilities; electronic transfer and in
kind. Besides official channels, money is remitted by hundi or hand carried by the migrant or
friends or family of the migrant.

Remittances contribute significantly to the national economy. The impact at the household level
is less straightforward. On the plus side, remittances allow families to meet their basic needs;
open up opportunities for investing in education, health care, etc.; relax constraints in the family
budget to invest in business or to save; are a kind of emergency resource; provide a social
security; and can boost the local economy. The negative impacts of remittances are a possible
dependency on this money flow and inflation. However, there is no conclusive evidence of the
impact on income distribution. Possibly remittances could result in ignore the local productive
activities in the receiving areas.

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 TABLE OF CONTENT

Chapter Topics Page Number

Latter of transmittal iii

Acknowledgement iv
Executive summary v
Background of the study 02
Chapter-1
Objective of the study 02
Introduction
Methodology 02
Limitation of the study 02
Chapter-2 Literature review 04
Literature review

Foreign remittance 07
Chapter-3
Types of foreign remittance 07
Theoretical review
Channels of foreign remittance 08
Chapter-4 Sources of remittance 12
Sources & use of Usage of remittance 12
Foreign remittance
Comparison and interpretation 18
In Bangladesh
Chapter-5 Impact on the economy 20
Impact on the economy

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Chapter-6 Findings, recommendation 22
Findings, recommendation 22
conclusion
& conclusion
Wage earners remittance every 10 years) 14
Wage earners remittance 15
Grapes
Export remittance (every 10 years) 16
Export remittance 17

Reference 23

Appendix 24

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