Impact of Pakistani Labor Migrant Network on Pakistan's International Trade with the Middle East (original) (raw)

Trade and Emigration from a Developing Country: Some Evidence from Pakistan

Asia-Pacific journal of rural development

Emigrants possess knowledge regarding the cultures and social environments of host and sending countries that can help strengthen the economic relationship between these countries. We find this to be true for Pakistan and its selected Organization for Economic Co-operation and Development (OECD) trading partners on whom data are available. During the period 1990-2003, Pakistan had a positive trade balance, on average, with English speaking countries, and a negative balance with non-English speaking countries of the OECD. Gravity model estimates, obtained in this study, suggest that the annual increase in the number of Pakistani emigrants in OECD countries accounted for a quarter of the annual growth in Pakistani net exports to the English speaking countries over the period of this study. Pakistan’s trade deficit with non-English speaking countries would have been at least 46 per cent higher had there been no increase in its expatriate population in those countries which appears to b...

The Macroeconomic Determinants of Remittances in Pakistan

2018

This study attempts to explore the relationship between remittances and the macroeconomic variables of Pakistan using gravity model for the period 2002–2013. The bilateral remittances from twenty-three major source countries were selected, which covered 90 percent of total remittances. The key findings of this study reveal that the economic performance of home countries has a positive and significant impact on remittances as revealed in migrants’ investment behavior. Moreover, the flow of remittances to Pakistan responds mainly due to the macroeconomic variables of remittance-receiving countries instead of the remittance-sending countries. Consequently, remittance receipts have become an important factor in promoting the economic growth of Pakistan. It is thus suggested that Pakistan should diversify migration destinations to stabilize remittance flows, promote the transfer of skilled migrants, improve the remittance transfer system, and use advanced technology to decrease the cost ...

Do Workers’ Remittances Promote Economic Growth? A Case Study of Pakistan

Journal of Islamic Monetary Economics and Finance, 2020

This study investigates the role of workers’ remittances in promoting economicgrowth in Pakistan, using data from 1976-2017. Remittances are an important sourceof Sharia-compliant (mostly) FX inflows, which may contribute to the economicdevelopment of many Islamic and non-Islamic economies. Nonetheless, they aremore relevant to Islamic economies, as they could potentially reduce therequirements of interest-based FX financing from donor agencies and/or from globalcapital markets. The impact of workers’ remittances on the economic growth ofIslamic developing economies remains a little explored area. Our research, whichemploys a case study of Pakistan, is first in this direction. We used the GMMestimation procedure to obtain efficient estimates in the presence of endogeneity andsimultaneity bias. Our estimates show that an increase in remittance inflowspositively affects the economic growth of Pakistan. The increase in per capita GDPcould be primarily due to an increase in the consumpt...

Impact of Workers' Remittances on Economic Growth: An Empirical Study of Pakistan’s Economy

Pakistan like other developing countries in the world is known for its high migration and workers’ remittance. In general it is considered that workers’ remittances are the important source for external finance and economic growth but many studies conducted on the same topic revealed some positive, negative and neutral responses of workers’ remittances toward economic growth. It is also argued that the high migration rate in any country represents the poor economic conditions of that country. This study identifies the impact of workers’ remittances on economic growth of Pakistan by analyzing time series data of twenty two years from 1991 to 2012. Regression model has been used to identify the relationship between the variables. The results conclude that there exist a significant positive relationship between workers’ remittances and economic growth in Pakistan and it has been recommended for policy implication that Pakistan should encourage and motivate the flow of workers’ remittances and adopt such policies that insist remitter to send money through proper channels so that these flows can be utilized in a better way for economic growth and development.

Migration, Remittances, and Household Welfare: Evidence from Pakistan

THE LAHORE JOURNAL OF ECONOMICS, 2015

This study examines the costs and household-level benefits of overseas migration in Toba Tek Singh, Pakistan. A household survey was conducted to assess the transaction costs associated with the transfer of remittances and the sources used to finance overseas migration. We also carry out a propensity-score matching exercise, which reveals that overseas migration has substantial benefits as measured by migrants’ consumption levels, their expenditures on health, education, and vehicles, and the level of household savings. Policy options to facilitate migration and the transfer of remittances include (i) establishing technical training institutions to help workers upgrade their skills, (ii) information campaigns on the migration process and opportunities available, (iii) setting up institutions to provide loans for potential migrants, (iv) reducing money transfer costs through formal channels, and (v) building awareness of the Pakistan Remittance Initiative.

Dynamics of Bilateral Trade and Labor Role in Case of Pakistan: A Gravity Estimation Model

iRASD Journal of Economics

The goal of this study paper is to look out for “Bilateral trade and labor migration in Pakistan a gravity estimation model. Trade among two states is known as bilateral trade. This paper analyzes the trade among Pakistan and 11 partners’ countries. Pakistan and 11 partners countries export and import goods for trade. Pakistan and partner countries sign different agreements for trade and the free trade agreement is one of the best agreements. For this research paper, we take the data from 2004-2019 in form of panel annual data for different countries taken from different sources these variables are used for this study Trade, gross domestics product distance, capital endowment , population scale , land endowment and relative importance of trade . Trade is a dependent variable GDP_dis, Cap_end, Pop_scal, Land_end, and RIMT are independent variables. Panel ARDL technique used for the estimation of results.

The network of migrants and international trade

Economia Politica, 2018

This paper investigates the relationship between international trade and migration with the specific aim of estimating direct and indirect effect of the latter on cross-border flows of both homogeneous and differentiated goods. Adopting a spatial econometric approach along with a gravity model set-up, we account for the role of ethnic communities in neighbouring countries on trade, and we propose a new way to define neighbours based on the intensity of links in the migration network. Our approach is particularly well suited to measure the indirect effect stemming from the presence of significant ethnic communities on trade through a “market familiarization” effect. Using data covering all countries between 1970 and 2000, we find a significant indirect effect of migration on trade, that depends on the chosen weight matrix.

The Impact of Expatriate Remittances on Economic Growth In Pakistan Economy

International Journal of Social Science & Entrepreneurship

The objective of this study is to look into the impact of remittances on economic growth in Pakistan. Pakistan came in tenth in terms of remittances collected. Policymakers can benefit from a better understanding of this link. For the purposes of this study, Pakistan data was obtained from the World Bank's Economic Data website between 2001 and 2019. Economic growth is proxies by the independent variable (IV), GDP per person growth, and remittances. According to the test known as the Augmented Dickey Fuller (ADF and the least squares approach, remittances have both immediate and long-term significant effects on the growth of the economy. Policymakers might use the outcomes of this study to design future migrant labor management measures. Over time, Pakistani foreigners have sent more money home as remittances. Money transfers to Pakistan grew from a value of 19.9billionin2020toatotalof19.9 billion in 2020 to a total of 19.9billionin2020toatotalof31.9 billion in 2021, based on data from the State Bank of Pakistan, suggesting a...

THE IMPACT OF GEOGRAPHICAL DISTANCE ON REMITTANCES: A CASE STUDY OF PAKISTANI DIASPORA

IAEME PUBLICATION, 2020

The rise in the number of Pakistanis working abroad has created an important source of monetary flows for the country. In Pakistan, the remittances are one of the major sources of foreign exchange earnings. One of the determinants of remittances is the geographical distance between the home country and the country where Pakistanis are working. In this paper, we inquire whether the geographical distance between two countries affects two-sided remittances by using panel data of 23 major destinations from 2001 to 2017. We find that there is a significant impact of geographical distance on remittances that Pakistan receives. The positive and significant coefficient between remittance and geographical distance confirms that Pakistani migrants who are working in far locations remit more JEL Classification: F22; F24; C23; O53

Exploring the role of Trade, Aid, Remittances and Financial Development in Pakistan

2011

In this paper, we explore the role of trade openness, overseas development aid (ODA), remittance inflows and financial development vis-à-vis income in Pakistan for the periods 1980-2010 using the bounds procedure within the augmented Solow-model approach. The paper finds that in the long-run, trade openness, ODA, and remittances have significant positive effect on income levels, while financial development is not statistically significant. In the short term, ODA has contributed positively towards income growth while remittances, trade openness and financial development have lagged, thus underscoring somewhat different behaviours of aid and remittance inflows. Accordingly, for development policy discourse, we emphasise the need of formalising and easing remittance transfers by minimizing transaction costs; promoting financial and mobile-led technology inclusion; further strengthening and cultivating public-private partnerships in developing necessary infrastructures and promoting investment; encouraging trade openness whilst exploiting areas of comparative advantages with an outward looking trade strategy; focusing on regional integration and co-operation in view of promoting trade in services (labour mobility); fortifying donor relations to ensure consistent flow of aid whilst effectively managing and deploying aid in productive infrastructure projects * Ronald Ravinesh Kumar is affiliated with the School of Economics in the Faculty of Business and Economics at the University of the South Pacific (USP), where he works as a Teaching Assistant. His area of research and publications include migration and development, capital inflows, financial sector development, ICT and economic growth in developing countries. Trade, Aid, Remittances and Financial Development: The Case of Pakistan J-SAPS Volume 02, Number 01 118