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Potentials and Hindrances of Directing Remittances in Investment: A Study in the Sylhet Region of Bangladesh

Corresponding Author : Dr. Md. Zakir Hossain (mzhossain.bds@gmail.com)

Authors : Dr. Md. Zakir Hossain

Keywords : Remittance, International migrant households, Consumption expenditure, Investment expenditure, Investment potentials

Abstract :

The Sylhet region of Bangladesh is undoubtedly a potential hub for industrial development due to its comparative advantage in terms of land, raw materials, capital, location specific advantages for international business, Diaspora network of Sylheti expatriates, etc. The foreign remittance is regarded as an important instrument for economic development of the region. An attempt is made to explore the potential and hindrances of directing remittances in investment sectors. The study has analysed a primary dataset generated by a field survey covering 500 migrant and 250 non-migrant households from 30 clusters of the Sylhet region of Bangladesh. In addition, the study has collected perception-based information from 63 key informants. The study has employed factor analysis to find out the major dimensions for the hindrances to the investment of remittances in productive sectors. The findings indicate that one-fifth households have all the three types (physical, financial and HRD) of investments. The investment spending tops in HRD sector followed by physical sector and by financial sector. All of the major investment sectors enjoy some advantages and suffer from some disadvantages in terms of returns and ease to invest. The factor analysis suggests three main factors labelled as decision-making problem rather than lack of knowledge and consciousness, inadequate infrastructural investment facilities and shortage of capable people & negative attitude of buyers those worked as hindrances of investing remittances in productive sectors in the Sylhet region of Bangladesh. The study recommends for taking actions regarding dissemination of advantageous factors for investment in the Sylhet region of Bangladesh along with undertaking the awareness campaign among potential investors.

Published on June 30th, 2020 in Volume 30, Issue 1, Physical Sciences