Remittances Research Articles

Relationship between Macroeconomic Variables and their Impact on Non-Performing Loans in Jordanian Banks

This study aims at showing the impact of macroeconomic variables such as GDP, unemployment rate, interest rates, remittances of workers abroad and external grants on non-performing loans in Jordanian banks. To achieve the objectives of the study and to test its hypothesis, the Autoregressive Distributed-lagged model (ARDL) was used. The study found that there is a long-term equilibrium relationship between these variables of the study. It also found that there is an inverse relationship with a significant effect on the long and short term for both external grants, GDP (Gross Domestic Product) and interest rates on non-performing loans in Jordanian banks. On the other hand, the study concluded that there is no impact on the long and short run for both remittances of workers abroad and the rate of unemployment on non-performing loans in Jordanian banks because these variables are not significant. The study recommends the Jordanian government to adopt policies and programs aiming at the reduction of the cost of borrowing to cut down NPAs, to promote the development of local investments and explore new international markets to attract Jordanian labor.

Ripple vs. SWIFT: Transforming Cross Border Remittance Using Blockchain Technology

Blockchain technology is transforming traditional financial systems. Cross-border money remittance industry is in a crossroad being challenged. The traditional SWIFT system is facing new comers like Ripple system which is based on the blockchain distributed ledger technology with its own crypto tokens. This paper conducts a SWOT analysis on both technologies to find out whether the blockchain technology has the potential to transform a traditional industry and how this may be possible. We conclude that Ripple has all of the advantages over SWIFT despite some minor issues. In short-term, SWIFT will still take the lead in the remittance market due to the economy of scale. However, in long-term, emerging technology like Ripple will eventually revolutionize the remittance industry or even other financial systems.

Methodological Approaches to Assessing External Labor Migration Impact on the Financial and Budgetary Sphere of Host Countries

The article is concerned with the impact of external labor migration on the financial and economic sphere of countries hosting foreign labor. The authors have developed a methodological approach to assessing labor migration impact on the development of the financial and budgetary sphere of the host countries. The method lies in using a quantitative analysis algorithm consisting of three stages. The first stage is to identify specific positive and negative effects of labor immigration on the financial and budgetary sphere of the host country. The second stage is to develop a system of analytical indicators and its implementation methodology to assess the impact of these effects on the financial and budgetary sphere. The third stage is to define the methods for collecting statistical information, necessary to design the system of analytical indicators. This methodological approach allows assessing the impact of labor migration on the financial and budgetary sphere of the host country on such key aspects as migrant worker remittances and the government revenues from foreign workers. The dynamics analysis of the proposed indicators will allow to make prompt decisions in preventing negative trends and maximizing positive effects of external labor migration.

STUDY AND ANALYSIS OF THE IMPAC‌T OF EXCHANGE RATE CHANGES ON SUSTAINABLE DEVELOPMENT AND A REFLECTION ON THE SIZE OF UNEMPLOYMENT IN EGYPT

Egypt has witnessed a lot of economic decisions in the recent period, which aims at directing and correcting Egypt's economic path in order to achieve sustainable economic development. Hence the importance of the message and its importance in trying to know the impact of changes in the exchange rate on sustainable development and the impact of this impact on the size of unemployment in Egypt in an attempt to eliminate unemployment in Egypt and the preservation of human wealth and development as one of the most important social dimensions of sustainable development, Using the real analytical method using the recent data issued by the Central Bank of Egypt and the general mobilization and statistics system, which resulted in the following. The changes in the exchange rate have had a positive effect on the size of the monetary reserves after the decision to liberalize the exchange rate. The monetary reserves increased from 21 billion pounds in fiscal year 2016 to 31.3 billion pounds at the end of December 2017. Despite the effect of Seems to be positive, but the source of this increase in the volume of reserves remains the source of remittances of workers abroad and is not due to the increase of the export power of the country. The positive impact, which seems clear and positive as a result of changes in the exchange rate after the floating decision on the volume of foreign direct investment, but the reflection of this impact on the unemployment rate came negative as the rates of unemployment before the decision to float the exchange rate between 13.3% in 2013 / 2014 and then became 12.7% in the fiscal year 2014/2015 to reach 11.9% in fiscal year 2016/2017, ie after the decision to float, that the unemployment rate is still in the borders of security and accepted globally

Lumping Together Democracy and Dictatorship: Has Macro Dynamics of Poverty Remained Steady in Pakistan

Abstract. In this study we check the relationship between macroeconomics variables with poverty. We select head count ratio proxy of poverty as dependent variable and GDP, unemployment rate, literacy rate, rural population and worker remittances as independent variables. For the analysis of the data we take time series data from 1978-2011 and established the long run and short run relationship between dependent and independent variables. First of all we check the normality of the data by descriptive statistics, further we check the stationarity of the data by applying ADF test. For long run relationship between dependent and independent variables we applied FMOLS techniques and relationship in short run checked by EMC methods. Results of the data shows, macroeconomic variables especially literacy rate and rural population have been major factors that affect poverty levels in Pakistan. GDP has a negative and insignificant impact on poverty. Literacy rate is positivly and significantly related with poverty. Worker remittances have negative and significant impact on poverty, while rural population has negative and significant impact on poverty. Unemployment has positive and insignificant impact on poverty in Pakistan. Keywords. Poverty, Macro economy, Capability. JEL. E20, E22, E29.

The Effects Of Remittance Inflows On Exchange Rates In Nigeria

The positive impact of remittances on development indicators of recipient countries is well documented in literature. Remittances have been a major source of economic support for dependents of migrant workers in their home countries. Nigeria receives the largest amount of remittances in Africa and the third among developing economies; receiving 21 Billion US Dollars in 2015. Large remittance inflows could however hurt the recipient economy when the flows are significant relative to the size of the recipient economy. With increasing remittance inflows relative to other capital inflows into Nigeria, remittances could have undesired outcomes, with the possibility of the exchange rates appreciation and a loss of competitiveness in the tradable sector. Using the Dynamic Ordinary Least Squares (DOLS) and data covering 1981 to 2014, this paper explores the empirical evidence regarding the impact of remittances on the real exchange rate in Nigeria. DOLS improves on OLS by coping with small sample and dynamic sources of bias to determine the long-run effect/coefficients of remittances and other variables on economic development. The DOLS also deals with the potential endogeneity problem of explanatory variables. Specifically, studying the nature of the variables, there is a possibility of reverse -causality running between the exchange rate and remittance, foreign direct investment. This situation therefore can raise the possibility of endogeneity. The potential of simultaneity bias, small sample bias and endogeneity among the regressors is dealt with by the inclusion of lagged and lead value of first differences of the regressors. In this design, the dynamic OLS estimator performed well relative to other asymptotically efficient estimators Our findings suggest that remittance inflows have been associated with a rise in the real exchange rate in Nigeria. The coefficient on remittances (REMI) is positive and statistically significant. Thus, high remittance inflows have been associated with a rise in the real exchange rate in Nigeria. This implies that high remittance inflows have exerted depreciating pressure on the country's currency. Thus, contrary to the Dutch disease proposition, high remittance inflows into Nigeria have not resulted in an overvalued exchange rate but a low-valued exchange rate.

Remittances and Their Role in Development

Remittances and Their Role in Development

Banking on Remittances? How opening a bank account in the United States affects Mexican migrants sending money back to Mexico

Data from 154 different Mexican communities, housed within the Mexican Migration Project (mmp), is used to explore the influence of U.S. assimilation on a Mexican migrant’s propensity to remit money back to Mexico. A migrant opening a U.S. bank account is employed as a proxy for assimilation. Sociodemographic, U.S. migration, and Mexican community control variables are included. It is found that a migrant opening a bank account during the last U.S. migration is associated with a reduced probability of remitting money back to Mexico, suggesting a shift in social and economic activity from Mexico to the U.S. for migrants abroad. Los datos de 154 comunidades mexicanas, agrupados en el Mexican Migration Project (mmp), se utilizan para explorar la influencia de la asimilación a Estados Unidos sobre los migrantes mexicanos, tomando en cuenta su propensión a enviar remesas de vuelta a México. La apertura de una cuenta bancaria en Estados Unidos por parte de un migrante se emplea como una forma subsidiaria de asimilación. Se incluyen variables sociodemográficas, de migración a Estados Unidos y de control de las comunidades mexicanas. Los hallazgos dicen que la apertura de una cuenta bancaria por parte de un migrante durante la última ola de migración a Estados Unidos se asocia a una menor probabilidad de enviar remesas de vuelta a México, lo cual sugiere un cambio en la actividad social y económica de México hacia Estados Unidos por parte de los migrantes en el extranjero.

Rural Out-Migration: A Catalyst For Agricultural Development And Environment Regeneration In Bekwarra, Cross River State, Nigeria

The rate, frequency and intensity of migration are increasing across the globe with dire consequences to source and receiving areas, however, out-migration can be a catalyst for development and natural resources conservation. Hence, the study examined the impacts of rural out-migration on agricultural development in Bekwarra, Cross River State, Nigeria. Specifically, the study: i. determines the impacts of out migration on agricultural and natural environment ii. the extent to which remittance from out migrants influence agricultural development in Bekwarra, Cross River State. One hypothesis was formulated and tested at 0.05 confidence limit. A survey design was adopted for the study using purposive and simple random sampling technique to elicit responses from three hundred and eighty (380) respondents drawn from the total number of farmers in the area. Findings revealed that out-migration has induced extended fallow time in some instance thereby allowing agricultural land to regain its fertility. Also reduce labour has informed changes from a more diverse cropping system to less intensive non-diverse cropping systems that has implications for the environment and food security of households. Chi-square statistical tool was used to test the stated hypothesis and the findings revealed remittances from migrants have a significant impact on agricultural development. It was recommended among other things that government should provide more social amenities and employment opportunity to curtail the exponential exodus of the youths from the area to other cities.

Seasonal Migrant Labor in the Forest Industry of the Southeastern United States: The Impact of H-2B Employment on Guatemalan Livelihoods

Migrant labor is a global phenomenon and remittances of migrant workers from non-industrial nations can play an important role in improving quality of life at family, community, and national levels. We focus on workers from Guatemala who obtain visas from the United States (US) Department of Immigration’s H-2B program that allow them to spend six or seven months a year planting and maintaining pine plantations in the southeastern US. Forestry is economically important in this region and the industry has come to depend on migrant labor. Our specific interest is how the H-2B program affects livelihood strategies of these workers, their families, and their communities. Based on primary data from 49 interviews conducted in eight Guatemalan communities, we explain motivations to engage in seasonal migration and positive changes brought about by the H-2B program in nutrition, housing, healthcare and long-term investments in agricultural lands, microenterprise development, education, and family stability.

The Effects of Globalization on the Environment

In multiple standard OLS regression models, we test the effects of 26 standard predictor variables, including the ‘four freedoms’ of goods, capital, labour and services, on the following indicators of sustainable development: avoiding net trade of ecological footprint gha per person, Carbon emissions per million US dollars GDP, CO2 per capita, Environmental Performance Index (EPI), Global footprint per capita, Happy Life Years, Happy Planet Index, and ln (number of people per mill inhabitants 1980-2000 killed by natural disasters per year+1). Our research shows that the apprehensions of quantitative globalization critical research are fully vindicated by the significant negative environmental effects of the foreign savings rate. High foreign savings are indeed a driver of global footprint, and are a blockade against a satisfactory Happy Planet Index performance. The New International Division of Labour (NIDL)-model (Froebel et al., 1980) is one of the prime drivers of high CO2 per capita emissions. MNC penetration, the master variable of most quantitative dependency theories, blocks environmental performance (EPI-Index) and several other socially important processes. Worker remittances have a significant positive effect on the Happy Planet Index, and Happy Life Years.

Woes of Remittances

No abstract available.

Impact of Macroeconomic Factors on the Growth of Islamic Banking: A Case of Pakistan

The present paper attempts to investigate the impact of some selected macroeconomic factors on the growth of Islamic Banking. An Islamic banking is one of the most rapidly growing segment of the economy nowadays particularly in Pakistan and other Islamic countries around the world. Therefore, the aim of our current study is to investigate whether macroeconomic variables influence the growth of Islamic banking in Pakistan or not. For that purpose, we used seven macroeconomic factors such as, gross domestic product, Muslim population, inflation rate, money supply, total savings, interest rates, and remittances. These variables are used because they directly or indirectly influence the Islamic finance system of the country. Annual data spanning from 1985 to 2015 for six Islamic banks were used. After confirming the stationarity and long run association, we estimate model by using error correction model (ECM). Results reveal that Muslim population, GDP growth, money supply and worker's remittances play a positive and significant role in the development of Islamic banking in Pakistan. However, interest rates, savings and inflation inversely related to the growth of Islamic banks. These empirical findings can have some important policy implications.

THE IMPACT OF REMITTANCES ON THE ECONOMIC GROWTH OF PAKISTAN AND INDIA

The international remittances sent back to the home country by migrant workers have a profound impact on the developing countries of Asia, Africa, Latin America, and the Middle East. Official international remittances sent home by migrant workers represent the second most significant source of external funding in the developing countries. Remittances by the international migrants to their countries of origin constitute the largest source of external finance for developing countries after foreign direct investment (FDI) (Adams Jr, 2004). Hence, worker remittances have increased the investment opportunities in the migrant home country. (McCormick & Wahba, 2000), that in turn have promoted growth in less financially developed countries by providing an alternative way to finance investment (Giuliano & Ruiz-Arranz, 2009). This research is carried out to determine the impact of remittances on the economic growth of Pakistan and India since economic growth of these countries impact economic stability as well as political stability in the region.

The Impact of Workers Remittances on Financial Market Development: A Case Study for Developing Countries

Although workers’ remittances inflows have grown gradually over the years and showed a sharp rise after 2000’s in the developing countries; the effect of remittances on financial development did not receive deserved attention from academic scholars. Yet, the effect of remittances on financial development is very important issue as the financial development plays very important role in rising economic growth or reducing poverty. Thus, main objective of this study is to explore the possible effects of workers remittances on financial market developments by employing dynamic panel data method for the period from 2002 to 2014. Our empirical results prove that there is no significant correlation between financial developments and remittance inflows. Yet, we have found that financial developments are positively correlated with investments while they are negatively correlated with inflation and economic growth.

Pilsētu sarukšanas ietekme uz vidi. Ventspils pilsētas piemērs

Pilsētu sarukšanas ietekme uz vidi. Ventspils pilsētas piemērs

La migration en faveur du développement : des défis aux opportunités

Cette contribution étudie les opportunités de la migration pour les pays en développement. Les avantages de la migration pour les pays d’origine sont souvent sous-évalués. Mais les migrants peuvent stimuler le commerce, les transferts de fonds, les innovations, les investissements dans le pays d’origine, et même rentrer chez eux à un moment donné avec un meilleur capital humain. Les diasporas qui fonctionnent peuvent devenir des facteurs de développement stables. Les politiques vis-à-vis des migrants dans les pays d’accueil développés peuvent améliorer l’impact positif de la migration en faveur du développement. Il s’agit notamment de mesures visant à favoriser l’intégration précoce des migrants dans les systèmes éducatifs et sur les marchés du travail, y compris les emplois pour les demandeurs d’asile. La double nationalité et les contrats de migration circulaire sont également des instruments possibles. La politique migratoire peut être une politique de développement efficace. Codes JEL : F22, F24, F66, J61, O15.

THE RELEVANCE OF REMITTANCES IN FOSTERING ECONOMIC GROWTH IN THE WEST BALKAN COUNTRIES

The remittances of diaspora workers, resulting from international migration, have attracted the attention of academics and policymakers for their role and importance in macroeconomic variables in their countries of origin. The purpose of the paper is to explore the effects of remittances and other variables, such as exports, capital formation, foreign direct investment, and labor force on economic growth in the six former Western Balkan communist countries (Albania, Kosovo, Macedonia, Montenegro, Bosnia and Herzegovina and Serbia). This study utilizes a strongly balanced panel data over the 2005-2015 period for the six Western Balkan countries using the ordinary least squares method (OLS), i.e., the Pooled Regression Model, to evaluate the parameters. According to the regression results, we can conclude that remittances have a positive impact on economic growth in the West Balkan countries, so remittances can foster economic growth in those countries. Also, we find a statistically significant positive relationship between economic growth and other variables included in the model, such as exports, capital formation, and labor. The relationship between economic growth and foreign direct investment has turned out to be statistically insignificant and negatively related.

Assessment of Distributive Effects of Emigrant Remittances in Developing Countries

Despite the rising volume of remittances flowing to developing countries, their distributional effect on the recipient countries has been largely unexplored. We examine this topic using data from World Bank. Despites the positive effects of emigrants remittances in terms of developing microfinance Institutions and welfare improvement of the recipient households, its negative effects ranges from appreciation of the national currency, hampering competitiveness, monetary management and rekindle inflationary pressures, extension of trade deficits and brain drain to mention just a few. Remittances represent a short-term fix for long-term problems. If properly channeled Remittances could be used to finance development and reduce poverty. Government of the recipients countries should promote Diaspora bonds in order to reap full benefits of emigrants remittances.

DISTRIBUTIONAL IMPACT OF FOREIGN REMITTANCES IN PAKISTAN

This paper studies the impact of foreign remittances on income distribution for Pakistan by collecting time series data from 1980 to 2010. The dependent variable is income inequality and the independent variables are foreign remittances, trade openness, economic growth and the inflation rate. The data on worker remittances was taken in different forms such as current U.S. dollars and total remittance receipt as a percentage of GDP. The empirical analysis was done by using Johansen’s cointegration test and vector error correction model (VECM). The results indicate that in both of the models, a long-run relationship was present among the variables and short- run analysis showed convergence towards long-run equilibrium. Remittances had a significant and positive impact on income inequality in both the cases. Similarly, trade openness had a significant and positive impact on income inequality, leading to worsening of income distribution. However, economic growth and inflation improved income distribution.