Remittances Research Articles

A Way towards Economic Growth in Pakistan: Role of Worker’s Remittances Revisited

This research is directed to study the role of remittances in the economic growth of Pakistan. In Pakistan workers, remittances are considered a second-largest source of finance after FDI. In this study, the relationship between worker's remittances and economic development in Pakistan is estimated by using the Ordinary Least Square (OLS) technique. Data is taken in time series for the period of 37 years from 1976 to 2013 from World Bank, economic surveys, and Stat bank of Pakistan. This research showed that worker’s remittances are positive as well as significant with GDP growth and also playing a dynamic part in the economy of Pakistan. Savings (SAV) and Foreign direct investment (FDI) have positive and significant impacts on economic development. Therefore, the study recommends that there should be a proper setup that will help to attract more workers remittances into the economy. There is a need for such an official financial sector that inspires recipients to invest their savings into a productive sector that would result in economic growth.

Impact of Foreign Capital Inflows and Money Supply on Exchange Rate: A Case Study of Pakistan

The study attempts to examine the impact of foreign capital inflows and money supply on exchange rate of Pakistan. For this purpose we have undertaken time series data for the period of 1973-2016. Annual data for the period 1973-2016 is used, taken from Economic Survey of Pakistan (various issues) and International Financial Statistics (IFS). The main variables used in our analysis are exchange rate, openness, workers' remittances, foreign direct investment, foreign aid and money supply. Simple Linear Regression model with ordinary least method (OLS) is used to analyse the results. Money supply is positively and significantly related to exchange rate. Worker's remittances (WREM), foreign aid (FAID), foreign direct investment. (FDI) and openness (OPP) are negatively and significantly related to exchange rate. The study shows that foreign capital inflows and workers' remittances significantly appreciate the exchange rate in the case of Pakistan.

English

Within the last decade, the Kingdom of Saudi Arabia (KSA) achieved a high economic rate of growth of about 5.5% per year. Consequently, the number of immigrants grew rapidly reaching 9 million, which resulted in an increase in worker remittances out of the Kingdom. Since then, the KSA has become one of the first countries of the world in terms of remittances outflows and coming third worldwide after the USA and Russia in 2014 as remittances totaled 37 billion dollars, about 5% of the gross domestic product (GDP) and have doubled within 6 years. This research tries to measure the effects of these remittances on the economic growth of Saudi Arabia during the period 1970 to 2014 by using standard growth model augmented by the amount of remittances outflows. The Autoregressive Distributed Lag approach to Error correction modeling (ARDL-ECM) was used in order to estimate a short and long relation between remittances and gross domestic product (GDP) in Saudi Arabia in the studied period. The main result is that, both in the long and the short term, remittances outflows have no significant effect on GDP. This could be attributed to their decreasing share relative to GDP. Key words: Economic growth, workers' remittances, ARDL model.

Determinants of Mobile Money Remittance in East Africa

Determinants of Mobile Money Remittance in East Africa

Necessity and assumption of hospital scientific research fund management platform

Objective Build the hospital scientific research management platform. Methods According to expenditure process and the management standard requirements, the establishment of a fund management system platform to achieve budget、accounted for, spending and audit feedback function. Results Scientific research funds management platform is mainly composed of project application, project establishment and review, the report query and remittance receipt of financial department. Full consideration of the personnel, project, financial and other related system interface. In the construction of data using the standards of the state and the university scientific research information. Conclusions Through building the hospital scientific research management platform, improving the working efficiency, reducing the labor intensity of the management and financial personnel, realizing the accuracy and effectiveness of management. Key words: Scientific research funds; Management platform

Democracy and international financial integration in Pakistan

PurposeThe purpose of the study is to investigate the relationship between international financial integration (IFI) index and democracy (DEM) in Pakistan by using long-time series data from 1975 to 2013.Design/methodology/approachThe IFI index is constructed by principal component analysis. IFI consists of foreign direct investment (FDI), remittances (REM) and external debt (ED), whereas the Polity IV index is used for DEM. Johansen and the autoregressive distributed lag method for cointegration methods are used to find a long run relationship. Dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS) and canonical regression (CR) have been used to find the nature of the relationship. Rolling window analysis has been done to find the year wise coefficients.FindingsDOLS, FMOLS, canonical regression CR and cointegration results suggest a significant negative long-run relationship between IFI and DEM in Pakistan. Rolling windows analysis highlights that DEM has improved IFI in Pakistan from 2008 to 2013.Originality/valueThis study constructs an index for financial integration using principle component analysis on capital inflows, i.e. FDI, REM, ED, to explore the impact of DEM on IFI in Pakistan from 1975 to 2013. This study investigates for the first time ever the relationship between IFI index and DEM in Pakistan.

Measuring the Impact of Economic Stability and Remittances of Overseas Workers on Bank Deposits: the Case of Jordan

This study aims at measuring the impact of economic stability represented by (Inflation rate, Economic growth) and remittances of overseas workers on bank deposits in Jordan during the period (2000-2015).The study used the multiple linear regression method by the (E-views) program to study the impact of the independent variables on the dependent variables. Statistical analysis showed the presence of a statistically significant, positive correlation for both the rate of inflation and workers' remittances on current deposits, saving deposits and time deposits. The statistical analysis also showed that there is a statistically significant, negative correlation between economic growth rate on current deposits, saving deposits and time deposits.The study reached a number of recommendations, most important is: the need for local banks administration to take into consideration the economic factors and variables, including inflation, economic growth and remittances of overseas workers, which directly affect the bank deposits in Jordan, study their evolution and forecast their future value to take various measures that will be positively reflected on the growth of bank deposits.Another recommendation is the need for local banks administration to attract more remittances of overseas workers, through genuine and honest programs that provide benefits for overseas workers and the bank alike.

International worker remittances and economic growth in a Real Business Cycle framework

In this article I augment the standard open economy Real Business Cycle (RBC) model with stochastic remittance shocks. The model was calibrated to match broad, stylized facts common across a large set of remittance recipient countries. The calibration exercise reveals that output does not respond as much to remittance shocks relative to technology shocks. The model predicts that temporary inflows of worker remittances positively affect GDP per capita while a permanent increase of remittances does not. Cross country econometric evidence is consistent with the theory: there is a significant and positive correlation between the temporary component of remittances and growth; and permanent component of remittances do not affect output growth.

Predictors of Investment Expenditure from Foreign Remittances in the Sylhet Region of Bangladesh: A Household-Level Analysis

Remittances, the most explicit outcome of international migration, play a vital role in the socioeconomic development of Bangladesh. The optimum allocation of these scarce resources is of utmost importance for intergenerational consumption smoothing. This study explores the household-level factors of spending remittances in different investment sectors. The study uses a primary dataset from a field survey covering 500 migrant and 250 non-migrant households from 30 clusters of the Sylhet region of Bangladesh. Results indicate that total household income, ownership of residence, asset score, operative land, household size and economic dependency ratio are the significant determinants for investment in an absolute sense. The models for identifying the predictors in different investment sectors suggest that household income, ownership of residence, asset score, education of the household head and household size are common determinants for all the sectors. Substantial investments in different sectors may be determined by several predictors, such as household income, ownership of residence, asset score, education of household head and household size.

MIGRATION CAPITAL: THEORETICAL, CONCEPTUAL AND PRAGMATIC ASPECTS

Introduction. A clear understanding ofthe patterns ofthe formation, distribution and use of migration capital is impossible without a thorough theoretical and methodological developments, taking into accounthistoricalparallels and studying advanced foreign experience in this held. Purpose. Investigation of the essence and theoretical generalization of the definition of “migration capital”, analysis ofthe current practice ofthe arrival of migration capital to individual countries of the world and Ukraine, as well as the development of proposals for the implementation of effective measures forits use. Results. Theterm “migration capital” is relatively new in modem financial science. Many domestic scholars and foreign researchers identifythe concept ofmigration capital and remittances ofiabormi-grants. According to our convictions, money transfers to migrant workers are private transfers of crisislike nature, which are sent voluntarily by labor migrants to specific households in order to maintain their financial stability. Thus, we can argue that transfers of money transfers, in essence, form a separate component ofthe international capital market - migration capital. Conclusion. Money remittances of migrant workers are essentially a migration capital. The development of financial infrastructure, the use of state-of-the-art money transfer technologies, and the improvement and expansion of banking services in the area ofservicing remittances of migrant workers will adequately address the financial potential ofmigration capital, which in turn will stimulate economic and social developmentofthe country.

Workers' Remittances and Growth Linkages in Pakistan

Remittances are considered as the cash inflows to the economy and are imperative international source of revenue for most of the less developed countries (LDCs). For data analysis, the Ordinary least square estimation technique was employed to the time series data for the years 1981 to 2010. This research comes with the conclusion that level of GDP is positively associated with the worker's remittances and the findings also support the optimistic view of remittances. It is suggested that govt. should take serious steps and proper measures to utilize the workers' remittances so, that the economy will be on the right track towards the development.

International Worker Migration and Remittances in South Asia: A Landscape of India’s Emerging Scenario

Since the decolonisation of the South Asian countries, international labour migration has been one of the predominant factors affecting the economic conditions in the region. However, with the advancements in the means of transportation and communication, this process—since the last couple of decades—has considerably intensified, quickened and become more pronounced, resulting in a key global phenomenon. In 2013, South Asians were the largest group of international migrants living outside their countries of birth. Equally, in 2012, while the global remittances were recorded as US$ 590 billion, South Asian countries received US$ 107 billion. India alone received the remittances amounting to US$ 71 billion, and has been listed at the top of the ten highest remittance-receiving countries as of 2013. This paper reviews and discusses some of the major trends, patterns and impact of labour migration in South Asia with special reference to India. Some possible interventions vis-a-vis better capitalising the labour migration processes in South Asia are considered for debate and discussion.

Evaluation of the impact of remittances of Egyptian workers abroad on the Egyptian economy for the period (1990 - 2014)

workers' remittances is gaining increasing importance to Egypt as one of the most important labor-exporting countries in the world. That comes as part of the leading countries in the world in terms of the size of the recipient transfers, and they are in the top ten countries in the world in terms of the volume of remittances. Where workers' remittances inflows occupied second place among all sources of foreign exchange after commodity flows and advanced on tourism revenues and Suez Canal and foreign direct investment and official aid during the period of search . The highest percentage of workers ' remittances in Egypt used to cover daily living costs reflecting a negative indicator for the development process in Egypt and this may be due to poor and underdeveloped investment environment in Egypt
 The workers' remittances are different from the rest of its stability relative financial flows and the trends adverse to the business cycle in the economies of countries receiving them. This means that workers' remittances may rise when a decline in the level of economic activity as a result of a financial shocks, natural disasters or political conflicts in the receiving of remittances countries, and this is what has been observed in the high volume of Remittances in the years 2012 - 2014 in Egypt, which has seen political situations and economic bad.

Resource curse contagion in the case of Yemen

This study analyses the economic developments in Yemen from the 1970s to today in the context of the resource curse hypothesis. After a brief survey of the resource curse literature, using empirical data, historical accounts, and political (economic) analyses, I confirm that post-reunification Yemen suffers from an intense oil curse. The curse is evidenced by low genuine savings rates, oil-dependency, a stagnating economy, and institutional failure. However, this study finds that the institutional failure which caused this is itself a product of the resource-curse-like developments following migrant worker remittances from Saudi Arabia in the 1970s and 1980s. Moreover, the current instability in Yemen has its origins in rent-seeking defections in the corrupt governing patronage network due to sudden anticipations of oil exhaustion. The analysis suggests that worker migration is able to transmit resource curse symptoms to other economies, which makes them also more vulnerable to future resource curse triggers, and that declining resource reserves increase political instability of countries with strong patronage networks.

EFFECTS OF REMITTANCES ON PER CAPITA ECONOMIC GROWTH OF PAKISTAN

This study investigates the effects of remittances on per capita economic growth of Pakistan for the period 1976 to 2013. The Auto Regressive Distributed Lag (ARDL) Bounds testing model was employed to explore short run and long run liaison of remittances with per capita economic growth. The analyses evidence statistically significant positive long run and short run impacts of remittances on per capita economic growth. Based upon the empirical results, this study suggests that government should formulate and adopt policies which can further motivate and enhance remittances inflow, and hence a more promising economic growth.

Smart Developmentt. An Essay on a New Political Economy of the Environment

In this book, we present a first empirical reflection on ‘smart development’, its measurement and its possible ‘drivers’ and ‘bottlenecks’. The very idea of ‘smart development’ was first proposed by Meadows (1992) and has not been really followed up to now in social science ever since. We first provide cross-national data, how much ecological footprint is used in the nations of the world system to ‘deliver’ a given amount of democracy, economic growth, gender equality, human development, research and development, and social cohesion. To this end, we first developed UNDP-type performance indicators from current standard international comparative, cross-national social science data on these six main dimensions of development and on the combined performance on the six dimensions (a UNDP type ‘human development index plus’). We then show the non-linear standard OLS regression trade-offs between ecological footprints per capita and their square on these six components of development and the overall super-UNDP development performance index, derived from them. The residuals from these regressions are our new measures of smart development: a country experiences smart development, if it achieves a maximum of democracy, economic growth, gender equality, human development, research and development, and social cohesion, and the combination of them with a minimum of ecological footprint. We then look at the cross-national drivers and bottlenecks of this ‘smart development’, using standard comparative cross-national data, which operationalize standard economic, sociological and political science knowledge in international development accounting. We compare the predictive power of these standard predictors, using standard OLS stepwise regression procedures, based on IBM SPSS XXII. Apart from important variables and indicators, derived from sociological dependency and world systems theories, we also test the predictive power of other predictors as well, ranging from geography and achieved development levels to the clash of civilization models, feminist theories, migration theories, and the ‘small is beautiful paradigm’ in the tradition of Schumacher. Our estimates underline the enormous importance of the transfer of resources from the centre to the periphery, brought about by migration, with huge statistical observed positive effects of received worker remittances on smart human development, Happy Life Years, smart gender justice, smart R&D, and both formulations of the smart development index.Finally, we take up an issue, which has been very prominent in recent global public health debate. Following the path-breaking articles by Wilkinson and associates, income inequality has a very detrimental effect on life quality. But life quality also depends in a non-linear fashion from environmental data. Thus, the Wilkinson research agenda finds its proper place also in debates about ‘smart development’, but certainly, the weight of other variables, such as • Membership in the Islamic Conference• military expenditures per GDP• Muslim population share per total population• public education expenditure per GNP• UNDP education index• worker remittance inflows as % of GDPalso has to be properly taken into account.

Sri Lankan women migrant workers and role of family and kinship networks

Migration from Sri Lanka to other countries has played an important role not only in Gross National Production of the country, but also social and cultural activities in the people. The International Labour Organization (ILO) estimated however, that the total number of legal migrant workers was 25 million and the illegal migrants were in the range of 45 million throughout the world (Sri Lanka Bureau of Foreign Employment -SLBFE 2014). In 2012, migrant worker remittances amounted to $6.1bn, or over 10% of GDP, the highest income from a foreign income source to the government. Many studies have focused on economic, social and cultural impact on the person, family and the society from the women migration to Middle East employment (Colen 1995; Gunatilake 1995; Gamburd, 1995; Wanninayake 2006). The aim of this paper in to explore the impact created by women’s migration on the family network and kinship relation and the find success achieved by their families. Particularly, when a woman leaves her family for foreign employment, instantly gaps and challenges arrive regarding the security of the family and taking care of children. In such situations, how does the family network and kinship networks operate, and with what effect? The study show when the woman absent, family members filling the gaps and share the service as well as how they managed, controlled, consumed, saved or invested remittance which have received as foreign earning by using their family and kinship networks. The study covers the two DS Divisions in administrative district of Kurunegala in North Western Province in Sri Lanka and selected a random sample for collecting data. The study manly depends on qualitative data using in-depth interviews, interview with key informants.

Protecting the west, excluding the rest: The Impact of the AML/CTF Regime on Financial Inclusion in the Pacific, and Potential Responses

Financial inclusion is an important international policy goal. Remittances promote financial inclusion by contributing almost half a trillion dollars to the economies of developing countries each year and by giving people a strong reason to engage with formal financial services. In the Pacific, remittances represent a significant proportion of many countries' GDPs. The G20 has committed to reducing the global average cost of sending remittances to 5 per cent. At the same time, financial service providers are facing increasingly onerous regulatory requirements to combat the global rise in money laundering and terrorism financing. In Australia, these requirements have led to the bank account closures of many money transfer operators, posing a real risk to financial inclusion, growth and stability in the Pacific. This paper examines the G20's goals for financial inclusion, the role of remittances in achieving these goals for the Pacific region, and the impact of anti-money laundering and counter-terror financing ('AML/CTF') regulations on the Australian remittance industry. A number of solutions are proposed to address the challenges facing the remittance industry in Australia, including the adoption of risk-based regulatory measures such as limiting transfer sums, digitising payments and encouraging greater use of technological innovation to reduce risks.

FINANCIAL DEVELOPMENT AND REMITTANCES IN RBMU'S COUNTRIES

Целью данной работы является оценка состояния развития финансовой системы в 3 из этих стран, с которыми Европейский союз установил отношения в рамках Программы партнерства, добавив Румынию также. Исследование основано на эмпирических данных о структуре и деятельности финансовых систем стран RBMU (Румынии, Белоруссии, Украины и Молдовы). Результаты коррелируют с влиянием притока денежных переводов для содействия развитию финансовых систем, особенно банковских систем, а также с обратным каузальным подходом.

Migration and remittances: the rise and fall of Albania and KosovoBruno S. Sergi and Giacomo Morabito

Migration and remittances: the rise and fall of Albania and KosovoBruno S. Sergi and Giacomo Morabito