Overseas Employment and Remittance Inflow in Bangladesh

Bangladesh met with regular and enormous labor migration to overseas from 1960s and it is still one of the most remittance gaining countries among the developing ones in Asia. Like overseas employment, remittances flow has been increasing every year with its increased share in GDP and export earnings which becomes vital elements for accelerating economic growth in Bangladesh. In this study, we found that there is a significant relationship between inflows of foreign remittances and overseas employment. Our analysis also reveals that unskilled manpower, insufficient government initiatives for exploring new overseas market for labor, employees’ reluctance to use legal channel for sending money are some of the reasons that inhibits the remittance inflows in Bangladesh. In this context, we think proper training, raising awareness and government active role will be suffice in ensuring inflows of foreign remittances. Keywords: Migration, Employment, Overseas, Remittance, Development

Impact of Minimum Wage on Employment and Exports in Readymade Garments in Bangladesh

Readymade Garment (RMG) sector is the key sector of Bangladesh economy. It provides job opportunities for more than 4 million people and most of whose are women. Since last three decades, the RMG sector has become the leading export earning sector. It becomes possible only for cheap labour force. But inflation rate has in Bangladesh is also high. Thus the real wage in RMG sector is very low. As a result workers lead a measureable life. So, the government announced the fifth minimum wage. Theoretically, an increase in wage may decrease employment level and create job-less situation for workers. But this study does not find any effect of increasing minimum wage in RMG sector in Bangladesh on employment level and it does not create any unemployment. So, it seems to be blessing for the workers. Keywords: Impact, Readymade garments, Minimum wage, Worker.

Micro-Credit as a Tool for Poverty Reduction in Bangladesh

Poverty has remained a global phenomenon and has defied various endeavors at curbing it especially in developing countries. The high and unacceptable number of people within its grip around the world gave it a pride of place as one of the major goals of Millennium Development Goals (MDGs) adopted in 2000. Poverty alleviation was a prime target of the MDGs and micro-credit was recognized as a veritable tool for tackling it. Since the 1970s, especially during the new wave of microfinance in the 1990s, micro-credit has come to be seen as an important development policy and a poverty reduction tool.  In this paper, we examined empirically the effect of micro-credit on poverty alleviation in Bangladesh using secondary data.  The results of the study show that poverty level is still high among the rural populace; but those that have access to micro-credit seems to have managed better than those who have no access to micro-credit. In other words, access to micro-credit has positive but not significant impact on poverty alleviation among the rural populace. The study recommends that government should intensify effort in its recent financial inclusion strategy to ensure that the rural populace has greater access to micro credits. Government should also ensure that interest rate on micro credits are affordable, the terms of the credits flexible and the conditions attached to the credit well liberalized. Keywords: Microcredit, Microfinance, Poverty, Eradication, Challenge

Profitability Analysis of Handloom Weaving Units in Tangail District of Bangladesh

Handloom, a traditional cottage industry in Bangladesh, has been contributing significantly to the rural economy of Bangladesh in terms of employment generation and income enhancement. In Bangladesh, handloom weaving activity is considered to be a marginally profitable business compared to other weaving options as well as other occupations. Therefore, the present study emphasizes on analyzing the profitability of handloom weaving units operating in Tangail district, a handloom concentrated region in Bangladesh. To this end, primary data of 53 handloom weaving units have been collected from two Upazilas of this district. From profitability analysis, the study finds that handloom weaving activity in the study area is still profitable albeit marginally. A disaggregated analysis revealed that small scale handloom units earn higher profit per loom compared to single units, medium scale units and large scale units. Contrarily, rate of return earned by large scale units is higher than that by other types of units. It is also found that handloom units, which produce higher value products earn more profit per loom than those producing lower value products. On the contrary, rate of return is lower in case of higher value products than that in case of lower value products. Extent of using family labor and economy of scale effect may have contributed to yield such differences