Construction of Household Welfare Index and Welfare Impact of International Remittances in Rural Bangladesh

This paper mainly focuses on the construction of a household welfare index to examine the welfare impact of international remittances in rural Bangladesh. This paper, in achieving this objective, uses primary data and several methods. This paper constructs a household welfare index newly to measure the level of household welfare. Besides, a linear regression and Chi-square test is used to examine the welfare and poverty impact of international remittances, respectively. Remittance receiving households enjoy the higher level of welfare more than non-recipient households in the study area. Household welfare is augmented by 0.116 if the household is under the shade of international remittances. A significant impact of international remittances on the reduction of household poverty is also found in this study. Therefore, this paper suggests policymakers for utilizing international remittances as a significant tool to enhance household welfare and to reduce household poverty.