Important Source Of Foreign Exchange Research Articles

An empirical analysis of international labour migration in the Philippines

This study empirically investigates the impact of economic, demographic, and political factors on the size of emigration from the Philippines. In 2007, overseas workers from the Philippines sent remittances in excess of US$14 billion annually to their families back home. Although these remittances are an important source of foreign exchange and play an important role in economic development, the determinants of emigration in the Philippines are not well established. A simple unrestricted error correction model of migration was specified and estimated using data spanning the period 1975–2005. Results indicate that the level of unemployment, adult literacy and population density are the key determinants of emigration in the Philippines. The result also indicates that government instability impacts negatively on emigration in the Philippines. The policy implications of the results are discussed.

Remittances and Household Behavior in the Philippines

As one of the world’s largest recipients of remittances, the Philippines received remittances roughly 12% of its gross domestic product in 2008. Remittances have become the single most important source of foreign exchange to the economy and a significant source of income for recipient families. Using the instrument variable estimation technique, this study examines the role of remittances in increasing household consumption and investment and thereby their potential for rebalancing economic growth and creating long-term human and capital investment. The results indicate that remittances negatively influence the share of food consumption in the total expenditure. However, unlike previous studies, the estimations show that remittances to the Philippines do not have a significant influence on other key items of consumption or investment such as spending on education and health care. A further analysis using logistical regression shows that remittances help to lift households out of poverty. Remittances thus may help in fighting poverty in the Philippines but not in rebalancing growth, especially in the long run.

Chitwan National Park: A Prime Destination of Eco-Tourism in Central Tarai Region, Nepal

Within the Himalayan region, Nepal is one of the countries that receive the largest number of international tourists, and also one where tourism has shown relatively rapid growth. The recent decades in Nepal tourism is being explored as one of the avenues for local development and it is second important source of foreign exchange for Nepal. This paper is an attempt to present the brief description of tourism resources in general and Royal Chitwan National Park (but since the republic government in Nepal the name has been changed to Chitwan National Park and hereafter it is named only CNP) as an example of prime destination of eco-tourism in Nepal. Existing tourism activities and its environmental considerations have been discussed on the basis of available secondary and primary sources of information. DOI: http://dx.doi.org/10.3126/ttp.v5i0.1956 The Third Pole, Vol. 5-7, PP 70-75:2007

Migration Remittances

Remittances are increasingly identified as golden eggs that contribute crucially to the foreign exchange earnings of many developing countries across the world. Governments and international agencies have recognised that remittances to the developing world are substantially greater than aid. Though the global flow of such remittances is in the vicinity of $150–200 billion, remittances to South Asia alone total perhaps $40–50 billion. Much of these remittances are done through unofficial mechanisms and procedures, via informal value transfer systems and are, therefore, unregulated and uncontrolled. Proliferating migrant social networks and the emergence of a vibrant immigration industry, have given a momentum to international migration. Remittances generate both micro and macro-economic effects. In microeconomic terms, remittances make an important welfare contribution to the receiving household, besides providing a cushion during an economic downturn or following natural disasters. They also generate ripple effects impacting extended family and community beyond the receiving household due to increased consumption. In macroeconomic terms, remittances provide a stable flow of funds that is often counter-cyclical and an important source of foreign exchange for many countries. The argument in this article concentrates on the economic and financial linkages that the Indian diasporic community has maintained with the mother country and their relevance to the developmental programmes in India.

Are Malaysia's Tourism Markets Converging? Evidence from Univariate and Panel Unit Root Tests with Structural Breaks

Over the past 25 years, the tourism sector has emerged as an important source of foreign exchange for Malaysia. This paper applies univariate and panel Lagrange multiplier (LM) unit root tests with one and two structural breaks to examine whether Malaysia's ten most important tourist markets are converging. The study finds strong evidence that Malaysia's tourism markets are converging. Based on these findings, implications are drawn about the success of the marketing strategies of Tourism Malaysia and the prospects for the continuing contribution of tourism to the Malaysian economy.

‘Fair trade gold’: Antecedents, prospects and challenges

This paper critically examines the challenges with, and impacts of, adopting the models in place for fair trade agriculture in the artisanal gold mining sector. Over the past two years, an NGO-led ‘fair trade gold’ movement has surfaced, its crystallization fuelled by a burgeoning body of evidence that points to impoverished artisanal miners in developing countries receiving low payments for their gold, as well as working in hazardous and unsanitary conditions. Proponents of fair trade gold contest that increased interaction between artisanal miners and Western jewellers could facilitate the former receiving fairer prices for gold, accessing support services, and ultimately, improving their quality of life. In the case of sub-Saharan Africa, however, the gold being mined on an artisanal scale does not supply Western retailers as perhaps believed; it is rather an important source of foreign exchange, which host governments employ buyers to collect for their coffers. It is maintained here that if the underlying purpose of fair trade is to improve the livelihoods and well-being of subsistence producers in developing countries, then the models that have proved so successful in alleviating the hardships of agro-producers of ‘tropical’ commodities such as coffee, tea, bananas and cocoa, should be adapted to artisanal gold mining in sub-Saharan Africa. Campaigns promoting ‘fair trade gold’ in the region should view host governments, and not Western retailers, as the ‘end consumer’, and focus on improving governance at the grassroots, organizing informal operators into working cooperatives, and addressing complications with purchasing arrangements – all of which would go a long way toward improving the livelihoods of subsistence artisanal miners. A case study of Noyem, Ghana, the location of a sprawling illegal gold mining community, is presented, which magnifies these challenges further and provides perspective on how they can be overcome.

Transitional economy tourism: German travel consumers' perceptions of Lithuania

AbstractThis paper examines the current status of tourism in Lithuania as well as potential German tourists' perceptions of Lithuania as a tourist destination. As tourism is an important source of foreign exchange and provides jobs for a large number of people, the Lithuanian Government is quite interested in increasing the number of tourists visiting the country. Data gathered at the International Tourism Exchange in Berlin was analysed and recommendations made concerning marketing techniques that could be used to increase tourism from the European Union and other western countries. Copyright © 2003 John Wiley &Sons, Ltd.

The Effect of Population and Migration on Forest Cover in Indonesia

The massive loss of quantity and quality of natural forest cover in Indonesia threatens an important source of foreign exchange and employment. Several studies and government policies indicate that population growth, particularly among small landholders, is the principal cause of deforestation. Although there is an element of truth to these studies and policies, they greatly oversimplify and distort the issue of Indonesian deforestation. This article evaluates “population-centered” (neo-Malthusian) explanations of forest cover change in Indonesia in the light of non-population-centered (non-Malthusian) evidence. The conclusion is that although population growth is an important part of the explanation of Indonesian deforestation, it should be seen as an intermediate variable, and not as an independent variable. The policy implication is that nonpopulation factors should receive greater attention in policy measures directed at controlling inappropriate deforestation.

Shrimp or bananas

This case discusses a serious environmental problem in Ecuador: the death of shrimp cultivated in the Bay of Guayaquil from fungicides used in the banana industry. The problem is notable because, unlike many instances of environmental degradation, the adverse effects appear immediately, not at some distant time in the future. Also, the effects are concentrated on an important industry in the private sector, instead of a marginal cost to a disperse “public.” Thus, this case challenges the notion sometimes common in poor countries that environmental degradation is of secondary importance. Conventional economic thinking is that pollution is an instance of market failure, the market failing to assign the cost of pollution in the production function. Economists conclude that the solution is government intervention. By such measures as taxation, the government can ensure that producers assume the full cost of their activities. There is no surprise that rapid economic growth results in instances of market failure. What happens, though, when governments are unable to fulfill their responsibility to correct externalities? In Ecuador political fragmentation stymies the ability of government to fulfill even the minimal tasks assigned to it by neoclassical economics. The unchecked killing of shrimp by fungicides used by banana growers thus represents market and state failure. In the absence of economic incentives to abstain from using fungicides, and the absence of the political power to prohibit the use of the fungicides, it is not clear that the shrimp industry in Ecuador will survive. Yet more is at stake than someone's business: shrimp exports are the country's third most important source of foreign exchange and an important source of employment. Despite the absence of much hope, the prospect of total ruin compels shrimp farmers to think systematically how, with the resources they command, they can prod the state into protecting their livelihood. In the political battle for survival, shrimp farmers confront the importance of information and the ways in which uncertainty is used against them. Shrimp farmers are convinced that their cause is just, but ironically they are denied the likely support of a potential ally—international ecology organizations—because shrimp farmers themselves are judged to harm the environment through their destruction of mangroves. The dominant mentality in Latin America, especially in the private sector, is that government is only a hindrance, and the more its activities are curtailed, the better. Ecuador's beleaguered shrimp industry, though, makes a powerful argument that a modern economy needs a strong, capable state. The accumulated evidence of the post-World War II epoch demonstrates that the state is not an efficient producer of goods. But the need for the state to regulate economic activity is more pronounced than ever.

China's Export of Labor and its Management

"This research note presents trends and data on China's labor export from 1979-1991. By 1990, China had deployed over 400,000 workers in 139 countries and regions, with labor export becoming an important source of foreign exchange. Data include China's contract value and number of workers annually; international distribution of Chinese workers; comparative figures for construction; contractors and labor cooperatives; and China's labor exports by corporation."

China's Energy Policy: Energy and Economic Development

Until the early 19705 China exported very little coal or oil. In 1978-79 decisions were made to modernize the economy by means of imported technology and capital goods and that meant China had to export more in order to pay for those imports. Energy exports, particularly oil, became an important source of foreign exchange. However, the increasing need for energy brought on by modernization has created a problem for China. With only limited amounts of oil available, it has been necessary to choose between meeting internal demand and exporting energy. In response China is, inter alia, substituting coal for oil internally and also expanding its exports of coal. Until the Chinese are able to produce other goods for export, energy will continue to be an important source of foreign exchange.

Oil Resource Exploitaton and Economic Growth in Nigeria: An Economy-Wide Optimization Study

Revenue generated from crude oil exports has been an important source of foreign exchange required for development in most net oil exporting developing countries. As a result, development planning in these nations require a thorough understanding of the linkages that usually exist between the oil sector and the rest of the economy. We used a macro-economic/optimization model to study the impacts of the developments in the oil market on the Nigerian economy. The modelling technique involve the building of a two sector macroeconomic model (oil and non-oil sectors) which is then employed together with a social welfare maximization objective function to formulate an optimal control problem for the economy. The need to have a balance of payment situation during the planning period was incorporated as a constraint in the formulation. The model was used to evaluate the optimal path of real imports during the decade of the 1970 in Nigeria, as well as the path of the macroeconomy in the future.

The role of public involvement in wildlife‐livestock conflicts: The case of Narok ranchers in Kenya

Abstract Economic activity associated with wildlife is an important source of foreign exchange in Kenya. Not surprisingly, the needs and interests of those involved in this sector are given due consideration. The exception is the farmers and ranchers who live among the wildlife and whose cooperation is necessary for maintaining this resource. As a result, farmers and ranchers have developed increasingly negative attitudes toward wildlife. On the basis of field study data collected in the Narok District of Kenya, the article argues that ranchers have in the past derived traditional and economic uses from wildlife and that their acquired negative attitude is a result of their exclusion from involvement in the design and planning of wildlife projects and policies. Four strategies for dealing with this potential conflict and incorporating ranchers and farmers into the wildlife economic sector are discussed: (1) involving the ranchers in planning and implementing wildlife projects, (2) strengthening wildlife education and extension services for the ranchers, (3) integrating and coordinating wildlife issues, and (4) complying with ranchers’ suggested solutions to wildlife conflicts.

Small Gold Mines — The Production and Declaration Problem: Another Dilemma for a Small Developing Country*

The under‐reporting of gold production in small developing countries denies these countries an important source of foreign exchange. This paper examines the problem in a Guyanese context, and suggests a series of measures to deal with the problem.

The export of manpower from Pakistan to the Middle East, 1975–1985

This article summarizes the major findings of recent research undertaken on: (1) Pakistani migration to the Middle East, and (2) on international labour migration in the Middle East and North Africa. The export of manpower from Pakistan for temporary employment in the Middle East has risen dramatically since the oil boom of the mid-1970s. As a consequence, remittances, which constitute the major gain from migration, have become an important source of foreign exchange, amounting to almost 80% of total merchandise export earnings by 1980/ 1981. The direct beneficiaries of these remittances are a million or so migrant households, whose average premigration income was somewhat above the national average household income. Remittances have enabled these households to significantly increase current consumption and purchase assets with the potential of improving their future income stream. Domestic labour has also benefited to the extent that migration has contributed to rising real wages in recent years. Migration has not, however, been an unqualified gain for the economy as a whole. The major cost has been the decline in productivity caused by the departure of quality labour among manual skills and professional categories, both of which cannot be easily replaced. It seems that, on balance, Pakistan has benefited from this labour export. Prospects for continuing migration on a substantial scale remain good for the near future, provided, of course, that projected growth rates of oil exporters materialize. The net benefits for the economy from migration in the coming years will primarily depend upon the extent to which scarce skills can be speedily replaced and remittances utilized to build productivity-increasing assets.

Trends in international migration and remittance flows: Case of Bangladesh

International migration from Bangladesh has become a defining characteristic of the country. Especially since 1980s, large scale labour migration has become a common phenomenon of Bangladesh. This paper examines the various issues of international migration and remittance flows of Bangladesh on the basis of the secondary data generated from various reports of government and non-government organizations and of various publications of home and abroad. With a few exceptions, manpower export has been showing increasing trend year by year. Most of the expatriates, who are largely unskilled, are working in the Middle East countries and in the UK and the USA. Like overseas employment, remittances flow has been increasing every year with its increased share in GDP and export earnings. Major share of total remittances come from the Middle East countries. But individually the position of the USA is just behind Saudi Arabia over the last few years. Finally it can be concluded that proper attention should be given on overseas migration in order to keep the unemployment rate within tolerable level and to increase the amount of remittances which is an important source of foreign exchange. Keywords: International migration; Remittance; Expatriate; Employment; Increased share in GDP DOI: 10.3329/jbau.v7i2.4751 J. Bangladesh Agril. Univ. 7(2): 387-394, 2009