Impact of Remittance on Food Security in Bangladesh

Abstract Purpose The purpose of this chapter is to assess the food security situation in Bangladesh based on 2011/2012 Bangladesh Integrated Household Survey data using two commonly measured food security indicators: Food Consumption Score (FCS) and Household Hunger Scale (HHS). Methodology/approach The dependent variable in the model is a categorical variable representing different scales of food security as obtained from the FCS and HHS indicators. These categorical variables are explained by annual remittances received by the households; the demographic characteristics (age, gender, literacy level, and occupation) of the household head; and total monthly income from agricultural and non-agricultural wages using ordered probit regression models. Findings Results indicated that remittances play an important role in improving the food security of households. Other significant variables in the model were income earned outside of the farm, male-operated household, and literacy. Increasing income from other than the agricultural sector significantly raises the probability of a household being food secure. Practical implications The Government of Bangladesh should make the agriculture sector stronger at all levels of the value chain. Additionally, providing income generation opportunities for households outside of the farm can be used as a diversification measure to achieve food security within the country.