Migration and employment interactions in a crisis context

David, Anda; Marouani, Mohamed Ali

doi:10.1111/ecot.12074

Cited by 14 publications

(10 citation statements)

References 29 publications

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“…A talented skilled worker in an underdeveloped country migrates to a developed country, which results in a remittance outflow to the recipient country in the form of cash and gifts (Bettin et al, ; Cortes, ). The RMO is thus the equivalent of a money leak from the host country and reduces household income and consumption (David and Marouani, ). The Keynesian demand function is described as follows:

Y_{t} = C_{t} + I_{t}

where

Y_{t}

is disposable income,

C_{t}

is consumption and

I_{t}

is the investment in a given time.…”

Section: Household Consumption Modelmentioning

confidence: 99%

Does Remittance Outflow Stimulate or Retard Economic Growth?

Khan

Tao

et al. 2019

International Migration

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This article evaluates the association between remittance outflow (RMO) and economic growth in the Gulf Cooperation Council (GCC) countries. The results of this evaluation indicate that RMO Granger creates gross domestic product (GDP) per capita in three countries, namely, Bahrain, Oman and Saudi Arabia. Similarly, the results for causality from GDP per capita to RMO are significant for four countries, namely, Bahrain, Kuwait, Qatar, and Saudi Arabia. The findings differ from those of the household consumption model, stating that higher RMO will decrease economic activity. GDP per capita is the main determinant of RMO, suggesting that economic growth promises and encourages continuous RMO and vice versa. The adverse impact of RMO can be minimized by encouraging the local population to be productive in the private sector, as local productivity will reduce the huge influx of foreign workers and provide valuable local investment opportunities to lessen the amount being remitted.

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Y_{t} = C_{t} + I_{t}

where

Y_{t}

is disposable income,

C_{t}

is consumption and

I_{t}

is the investment in a given time.…”

Section: Household Consumption Modelmentioning

confidence: 99%

Does Remittance Outflow Stimulate or Retard Economic Growth?

Khan

Tao

et al. 2019

International Migration

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“…with Armington elasticities of substitution and transformation ( _ and _ ) provided by the Global Trade Analysis Project (GTAP) version 9 database. The elasticity of transformation for international labor allocation ( ,ℎ2 ) is assumed to be 1.2, following David and Marouani (2015). In our model, the exogenous variables, such as labor endowment ( ,ℎ, ), government consumption ( , ) , foreign savings ( ) , and foreign direct investment ( _ , ) , are assumed to grow at the population growth rate so that the model can generate a balanced growth path for the business-as-usual (BAU) path.…”

Section: Model Estimationmentioning

confidence: 99%

Welfare and equity impacts of cross-border factor mobility in Bangladesh: A general equilibrium analysis

Hossain

Hosoe

2020

Economic Modelling

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Bangladesh is one of the top remittance recipient countries in the world and it is the second largest source of the country's foreign exchange earnings. However, in recent years, remittance inflows into Bangladesh have declined steadily because of real income reductions of migrants. This trend in income has increased the number of returning migrants, making domestic employment less secure. To address this issue, we develop a recursive dynamic CGE model for Bangladesh that describes the allocation of employment between domestic and foreign labor markets in response to a foreign wage premium, competition between local firms and multinational enterprises in the readymade garments (RMG) sector, and distributional impacts of factor mobility on different household groups. Our simulation results show that returning migrants reduce household welfare by lowering wages and increasing unemployment, particularly for unskilled workers in the domestic labor market. Using counteractive policy options, we examine the impacts of FDI promotion in the RMG sector and of a human-capital development program. Based on our results, we conclude that the former policy minimizes the negative impacts of foreign labor market shocks, while a combination of both policies is more equitable.

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“…There are two core issues that are of interest to both the developed and developing countries and these are as follows: (1) remittance inflows will increase domestic consumption and household disposable income (Azam 2015;Dey 2015) and (2) remittance outflow will decrease domestic consumption and household disposable income (David and Marouani 2015). This phenomenon can be effectively captured by the Keynesian demand function which is given as follows:…”

Section: Theoretical Models Related To Remittance and Economic Growthmentioning

confidence: 99%

A Johansen Cointegration Test for the Relationship between Remittances and Economic Growth of Japan

Naidu¹,

Pandaram²,

Chand³

2017

MAS

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Remittance inflows have been a key stimulus to economic growth of many developing countries. There is scant literature available on the impact of remittance inflows and outflows on the economic growth of the large developed countries. For instance, there is little literature on the impact of remittance inflows and outflows on the economic growth rate of Japan. Hence this research objective of this paper is to investigate the relationship between 'remittance inflows' and 'outflows' on the 'economic growth rate' of Japan. The paper by utilizing the World Bank data set and the econometric model namely the Granger Causality Model to test and analysis the impact of remittance inflows and outflows on the economic growth rate of Japan. The findings show that in the long run, a 1% increase in remittance outflows will decrease GDP growth rate by 0.000793%. In the short run, a 1% increase in remittance outflows and inflows will decrease GDP growth rate by 0.000599% and 0.000327% respectively. The Japanese government should encourage retired Japanese workers to return to the labour market and effectively contribute to the workforce and retired workers can be re-trained so that less foreign migrant workers are needed and this will reduce remittance outflow.

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Migration and employment interactions in a crisis context

Cited by 14 publications

References 29 publications

Does Remittance Outflow Stimulate or Retard Economic Growth?

Does Remittance Outflow Stimulate or Retard Economic Growth?

Welfare and equity impacts of cross-border factor mobility in Bangladesh: A general equilibrium analysis

A Johansen Cointegration Test for the Relationship between Remittances and Economic Growth of Japan

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