Economic Sociology: Impact of Foreign Debt, Remittances, Trade Balance, Exchange Rate, and FDI on Bangladesh’s Foreign Exchange Reserves

Md. Aminul Islam et al.

Journal of Social, Political and Economic Studies2025https://doi.org/10.65767/0278-839x.2025.50.13article
ABDC C
Weight
0.50

What the paper says

This study investigates the determinants of Bangladesh’s foreign exchange reserves (1976–2024), focusing on trade balance, external debt, remittances, FDI, and exchange rates. Employing time-series econometrics, we conduct stationarity tests (ADF), cointegration analysis (Johansen), and Granger causality tests. Key findings reveal that remittances, foreign debt, and trade balance positively influence reserves, while exchange rates exhibit a negative impact, and FDI shows negligible effects. Vector Error Correction Modeling (VECM) highlights equilibrium adjustments in exchange rates, remittances, and debt, whereas trade balance and reserves display weak long-term convergence. Bidirectional causality emerges between remittances and exchange rates, and impulse response analysis underscores the persistent effects of trade balance shocks. The paper concludes with policy recommendations to enhance reserve stability.

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https://doi.org/https://doi.org/10.65767/0278-839x.2025.50.13

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@article{md.2025,
  title        = {{Economic Sociology: Impact of Foreign Debt, Remittances, Trade Balance, Exchange Rate, and FDI on Bangladesh’s Foreign Exchange Reserves}},
  author       = {Md. Aminul Islam et al.},
  journal      = {Journal of Social, Political and Economic Studies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.65767/0278-839x.2025.50.13},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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