One of the important roles of economic globalization is to develop the economy through generating employment within the country with foreign direct investment (FDI) and exporting labour through international migration.
International migration is a very effective way to generate employment for over populated developing countries like Bangladesh. Bangladesh is one of the most densely populated countries in the world. Each year she exports large numbers of labourers abroad that raise an enormous foreign currency, called remittance, for the home economy.
As a trade deficit country, the balance of payment (BOP) of Bangladesh is sustained only based on remittance. Ultimately, remittances, as external development finance, play a major role to eradicate the poverty level in the rural locality of Bangladesh. Most researches have focused on the contribution of remittance on Bangladesh economy whereas it has also other impacts on the society.
Migration abroad causes a long term gap in personal, family and social relations. It also has very deep nonmonetary impacts such as broken family, psychological changes, social relationship, spread of diseases, cultural mismatch and physical problems. This study aims to develop a methodological and analytical framework to determine the socioeconomic impacts of international migration as well as its contribution to the macro, micro and local economic development in Bangladesh.
Both secondary and primary data were used for analysis. This study uses econometric time series analysis, ordinal regression based on probit model and structural equation model for analyzing data. At the macro level, this study found that in the long run, remittances impact the consumption and investment and at the local level, migration causes improvement of local economic condition and local institutions.
However, it also has some negative impacts on personal, family and social life. It causes the increase of extra-marital affair, broken family and gap in the social relationship. It also has linkage with social status changes, assistance in social issues, and changing the social values.
The findings could be used as input for policy recommendations and action plans for economic development of Bangladesh by NRB towards social betterment.