IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925.Volume 6, Issue 4. Ver. III (Jul. - Aug. 2015), PP 44-49 www.iosrjournals.org DOI: 10.9790/5933-06434449 www.iosrjournals.org 44 | Page Domestic Vs International Remittance flow: Economic Analysis of the Value of Remittance Transfer from Bangladeshi Migrants Fahmida Saadia Rahman 1 , Estiaque Bari 2 , Takrima Sayeda 3 1 Lecturer, Department of Economics and Social Sciences, BRAC University, Bangladesh 2 Research Associate, Asian Center for Development, Bangladesh 3 Lecturer, Department of Tourism and Hospitality Management, University of Dhaka, Bangladesh Abstract : International migration from Bangladesh has become a defining characteristic of the country and is considered to be an important livelihood earning strategy for the people. Especially since 1980s, large scale labour migration has become a common phenomenon of Bangladesh. This paper has examined the financial benefit receipt between the domestic and the international migration. Financial benefit is measured in terms of the value of remittance transfer from the migrants. An ordinary least square (OLS) model is used to estimate the objectives of the study. For this purpose secondary dataset has been used from the Household Income Expenditure Survey (HIES 2010) from Bangladesh Bureau of Statistics (BBS). Two types of migration have been considered in the paper – domestic and International migration. The affiliated cost of holding a passport, completion of visa procedure, transportation, and accommodation distinguishes international migration from domestic migration. There has been significant transfer of domestic remittance from urban to rural/sub-urban areas of Bangladesh but nevertheless the term remittance popularly known as value (both in cash and kind) transferred from abroad. The paper suggests households receive significantly high remittance from international migrants than domestic migrants. Hence the rational instinct of a human being is to migrate himself internationally. Besides, migrants with higher level of education send more remittance to households regardless of domestic or international migration. Key Words: Domestic, International, Migration, Remittance, Value Transfer I. Introduction Bangladesh is currently enjoying the demographic dividend and United Nations data suggests the increasing trend will continue at least up to year 2030.It allows Bangladesh to supply significant share of manpower in global market. It is one of the major labour- exporting countries in the world (Farid et al., 2009). About eight million international migrants have sent remittance to Bangladesh in June 2015(Bangladesh Bank, 2015). Albeit, international migration of workers in last decade increased on average over 4 percent, Bangladesh has experienced high domestic and international human migration since late 1980’s (Bangladesh Bank). Human migration by definition is the movement of people from one place to another for purposes of permanent or temporary residence and/or employment (Miah et al., 2014). Each year a large number people voluntarily migrate from rural to urban areas as well as overseas for both long- and short-term employment. The world economic recession in 1970s’ due to the increase in oil price opened up a vast scope for Bangladeshi migrants in the Middle East which was later on expanded to the newly industrialized countries of South East Asia (Siddiqui, 2003). Labour migration from Bangladesh has augmented further as the government of Bangladesh is promoting international labour migration as part of an overall development plan since 1976 (Refugee and Migratory Movement Research Unit, 2007). Moreover, the country became major source country of migrant workers during the 1980s (Mannan, 2001). Nowadays, as time passes, the international migration has become an essential part of the economic, social and political substance of the country. Meanwhile the trend of inter migration from rural to urban areas has also been increased mentionable due to multidimensional reasons like land erosion, natural calamities, desire for future prosperous life etc. However, migration has long been an important livelihood strategy especially for the migrant people of developing and least developed countries (Siddiqui, 2003). Remittances flow is one of most visible attributes of migration. Remittance is the transfer share of earning by the migrants. Overseas migration not only produces large inflows of valuable remittances but also offers an outlet for frustrated unemployed workers. It is also important in order to reduce unemployment at home and accumulate valuable foreign exchange to stimulate economic growth (Hadi, 1999).Remittance is a steadily growing external financial source for developing countries. It also plays a crucial role in alleviating the foreign exchange constraints and supporting the balance of payments, enabling imports of capital goods and materials for industrial development. It is a more stable and less volatile source of external finance when compared to the other forms of flows like as official development assistance and foreign direct investment (Ratha, 2007). In between 1979 to 2008, remittance inflows to Bangladesh have increased at an average annual rate of 19 percent (Hussain