Impact of Remittance on Household Healthcare Expenditure in Bangladesh: Evidence from the HIES 2022

This study investigates the effect of international remittances on household healthcare expenditure in Bangladesh. It addresses a critical aspect of how migration and financial inflows from abroad influence households' allocation of resources to healthcare. It utilizes data from the Household Income and Expenditure Survey (HIES) 2022. To address self-selection bias, Propensity Score Matching (PSM) is employed to compare healthcare spending between remittance-receiving and non-receiving households rigorously. The results show that remittance-receiving households spend approximately Tk. 2,000–2,300 more per year on healthcare compared to non-recipient households, indicating a statistically and economically significant difference in expenditure. This suggests that remittances play an important role in improving households' ability to access medical consultations, medications, and treatment services. Policy-wise, the findings imply that supporting safe overseas labor migration and encouraging productive utilization of remittances could enhance household welfare and strengthen health security in Bangladesh. This study provides fresh insights into the economic implications of foreign remittances, emphasizing their potential to enhance household welfare through increased healthcare spending. It underscores the importance of policies promoting international migration and the efficient utilization of remittances to improve household well-being.