Influence of remittance inflows on health outcomes in Bangladesh considering climate change, health expenditure, and trade

The United Nations’ Sustainable Development Goals (SDG-3) emphasize promoting healthy lifestyles and well-being for individuals of all ages. Few studies have assessed how remittance inflows interact with climate change and trade to influence health outcomes in Bangladesh. This study examines the impact of remittance inflows on health outcomes in Bangladesh, controlling for climate change as proxied by CO2 emissions, health expenditure, and trade openness, using data from 1985 to 2021. Using Principal Component Analysis, we measure the health outcome by devising a novel Health Quality Index (HQI). HQI comprises five key health outcomes: infant survival rate, maternal survival rate, survival rate from infectious diseases, life expectancy, and vaccination ratio. We utilize the autoregressive distributed lag (ARDL) model and the non-linear ARDL approach, which are supplemented by cointegrating regressions, namely “fully modified ordinary least squares (FMOLS)” and the canonical cointegrating regression (CCR) assessment. The four estimates indicate that remittances harm the HQI in Bangladesh. Similarly, environmental pollution also harms health quality. Health expenditure shows a mixed impact; using the ARDL approach, it marginally improves health outcomes, but remains insignificant across the other three estimation methods. Trade openness has a negligible impact on health quality. To maximize remittance benefits, governments should implement policies directing remittance flows toward equitable healthcare and economic resilience. This includes incentivizing remittance-funded health spending, promoting financial literacy, and encouraging productive use of funds beyond household needs. Integrating remittance strategies into national health and climate plans can strengthen infrastructure and reduce long-term dependency.