A Decade of Incentives: Cash Incentive Economic Impact on Bangladesh

Abstract

This study investigates the economic impact of Bangladesh’s cash incentive programs between 2014 and 2024, focusing on their role in promoting exports and formal remittance inflows. Special emphasis is given to the 2% remittance incentive introduced in 2019 and the broader evolution of incentive policies as Bangladesh prepares for graduation from Least Developed Country (LDC) status in 2026. A mixed-methods approach is employed, combining a review of policy documents with a period-based comparative analysis of official economic data from the World Bank and Bangladesh Bank. The findings indicate that the 2% remittance incentive had a significant positive impact on remittance inflows, with an average growth rate of 16.41% during 2019–2021.