The Impact of Income on Educational Investment

Investment in educational human capital in developing countries may be studied using Becker´s framework for the demand and supply of human capital. The demand represents the present discounted value of benefits (labour market earnings), and the supply represents the present discounted costs of education (school fees, travel costs, opportunity costs in terms of foregone earnings).There are several points attached to the issue of demand that are important.

Definition of Investment banking

Investment banks are institutions which assist commercial organizations in raising long-term capital through the sale of shares, stocks, debentures and bond. It is a system where banks arrange long-term funds for business and industry. They work both as financiers as well as underwriters. As financiers they themselves provide long-term funds to business and industry.

Investment of Remittance in Bangladesh

Since the 1970s, remittances have been generally perceived to be largely spent on houses, food, cars, clothes, and important consumption goods, not on investments in productive enterprises. However, recently remittances have been increasingly used for investment purposes in developing countries, especially in low income countries. Adams, for example, finds that in Guatemala, the majority of remittance earnings are not spent on consumption goods. At the mean level of expenditures, households without remittances spend 58.9 percent of their expenditure on consumption goods compared to 55.9 percent on the part of households receiving international remittances.[1] He explains that households receiving remittances tend to view their remittance earnings as a temporary stream of income thus discouraging them from spending more on consumption.