Remittances and Savings Behavior Reflections from Kyrgyzstan essay
Saving behavior is behavior performed by people who spend part of their income on savings, 11 for example by improving their income, reducing their expenses and slowing down their expenditure. Using a dataset of countries, Ait Benhamou and Cassin 2021 found that remittances tended to increase investment in education at the expense of investment in physical capital. As for Vietnam, the literature on the impact of remittances has mainly focused on income and expenditure. Twenty years of data show that remittances received are trending upward along with national GDP. In the, total GDP. of Nepal. US which. 5 Remittances may therefore represent a transfer of consumption to households, an alternative savings mechanism for migrants Quinn, 2005, investments in social capital through intra-household transfers Carling, 2008 and payments for services provided Bernheim, Shleifer, amp Summers, 1985 Cox, 1987. This view, previous research, shows that the saving behavior of employees has a positive modernization effect. Nevertheless, workers' savings cannot fully compensate for the negative modernization effects of the economy. Objective The objective of this study is to investigate the impact of remittance inflows on household savings behavior in Bangladesh. Remittances are considered the countercyclical revenue stream for the receiving economies. It increases the liquidity of households receiving remittances, allowing them to weather local economic shocks,