Remittances, Household Consumption and Savings in Narayanganj District, Bangladesh: Evidence from a Micro-Level Household Survey

Remittances are an important source of household income and play a significant role in improving the welfare of migrant families in Bangladesh. This study examines the influence of remittances on household Consumption expenditure and savings behavior among remittance-receiving households in Hazirteck village of Kalaparira Union, Araihazar Upazila, Narayanganj District. Primary data were collected through a structured household survey of 71 remittance-receiving households. Descriptive statistics and simple linear regression models were employed to analyze the relationship between remittance inflows, household Consumption expenditure, and savings. The findings indicate that average monthly household Consumption expenditure increased from BDT 7,098 before migration to BDT 15,225 after migration, while average monthly savings increased from BDT 12,789 to BDT 63,155. Regression results reveal a positive and statistically significant association between remittances and household Consumption expenditure (β = 0.065, p < 0.01) as well as household savings (β = 1.07, p < 0.01). The results suggest that remittance-recipient households allocate a substantial portion of remittance income to savings in addition to meeting Consumption expenditure needs. The study is subject to several limitations, including a small purposively selected sample from a single village and the use of recall-based information for pre-migration conditions. Therefore, the findings should not be generalized to the entire Narayanganj District or Bangladesh. Nevertheless, the study provides useful micro-level evidence on how remittances influence household financial behavior in a peri-urban area of Bangladesh. Policies promoting safe migration, lower remittance transfer costs, financial inclusion, and productive use of remittances may further enhance the developmental benefits of migration.