What determine remittances to Pakistan? The role of macroeconomic, political and financial factors

Abbas, Faisal; Masood, Amjad; Sakhawat, Arifa

doi:10.1016/j.jpolmod.2017.03.006

Cited by 45 publications

(45 citation statements)

References 21 publications

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“…This result indicates that a 1 per cent depreciation in Indian Rupee is associated with a 1.31 per cent increase in remittances to India, supporting the wealth effect. Moreover, this result coincides with the results of Singh, (), Al‐Mashat and Billmeier, (), ILO (), Makhlouf and Kasmaoui (), and Abbas et al, ().…”

Section: Resultssupporting

confidence: 91%

“…In the case of the wealth effect , a depreciation in the native country’s currency – an increase in the value of the each dollar earned in foreign countries in terms of local currency – increases purchase power of migrants and inducing a wealth effect in the country of origin. This, in turn, may stimulate migrant workers to send more money (self‐interest remittances) to the country of origin to buy land, house and some other durable assets (Faini, ; Singh, ; Al‐Mashat and Billmeier, ; ILO, ; and Abbas et al , ). On the other hand, if remittances are altruistically motivated or transferred to repay loans that are taken to cover the cost of migration (Lucas and Stark (), a depreciation in the home country’s currency reduces the dollar equivalence of loans denominated in domestic currency.…”

Section: Determinants Of Remittances: Theory and Literaturementioning

confidence: 99%

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The asymmetric impact of oil prices on remittances: evidence from India

Akçay

Karasoy

2019

OPEC Energy Review

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Remittances make up a sizeable part of the Indian economy. Using recently advanced non‐linear autoregressive distributed lag (NARDL) model (Shin et al, 2014), this study aims to address the asymmetric impact of oil prices on international remittances over the period 1975–2017, in the context of India. The results reveal that: (i) changes in oil prices and remittances are asymmetrically associated in both short and long run; (ii) remittances react differently to changes in oil prices: while positive movements in oil prices lead to an increase in remittances, negative movements lower remittances; (iii) compared to positive oil price shocks, negative shocks have more profound impact on remittances in the long run; (iv) exchange rate has an asymmetric effect on remittances only in the short run; (v) financial development has negative influence on remittance inflows in the long run; and (vi) GDP per capita does not have any significant impact on remittance inflows in the long run, whereas it negatively affects remittances to India in the short run.

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Section: Resultssupporting

confidence: 91%

Section: Determinants Of Remittances: Theory and Literaturementioning

confidence: 99%

The asymmetric impact of oil prices on remittances: evidence from India

Akçay

Karasoy

2019

OPEC Energy Review

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“…To obtain an overview of the relationship between remittances and its internal and external drivers, following Bettin et al (2017), Abbas et al () and Guetat and Sridi (), we estimated the following remittance determination equation using annual data for the period 1980–2015. The availability of data urged us to choose this time period.

r e m_{t} = β_{0} + β_{1} y_{t} + β_{2} f d_{t} + β_{3} m i n s_{t} + β_{4} e x c_{t} + β_{5} o i l p_{t} + β_{6} y o e c d_{t} + ε_{t}

Our dependent variable ( rem ) is the ratio of remittances to GDP .…”

Section: Data and Empirical Methodologymentioning

confidence: 99%

“…In the remittance literature, inflation rate (Buch and Kuckulenz, ; Abbas et al, ) and external debt stocks (Abbas et al, ; Bettin et al, 2017) are separately used as the indicators of macroeconomic instability.…”

Section: Data and Empirical Methodologymentioning

confidence: 99%

“…Financial development, origin and host countries' income levels, inflation, exchange rates, interest rates, and political stability are the main driving macroeconomic forces of remittance inflows. Recently, a considerable empirical literature has grown up around the topic of macroeconomic determinants of international remittances in developing countries (Bettin et al, 2017;Abbas et al, 2017;Guetat and Sridi, 2017;Kakhkharov et al, 2017;Mallick, 2017;Umair and Waheed, 2017;Azizi, 2018;Vacaflores, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Determinants of remittances in Egypt: Do macroeconomic instability and oil price matter?

Akçay

Karasoy

2019

International Migration

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Emigration and resulting voluminous remittance inflows have been noticeable features of the Egyptian economy since the 1960s. The main purpose of this study is to investigate the determinants of remittances – primarily the role of both macroeconomic instability and oil price – in Egypt. Using autoregressive distributed lag (ARDL) bounds testing procedure, we estimated a remittance determination equation over the period from 1980 to 2015 and found that: (1) macroeconomic instability in Egypt and increases in international oil prices promote remittances; (2) GDP growth rate in the host countries and depreciation of domestic currency spur remittances; (3) financial development is inversely related to remittances, implying that remittances and financial development are substitutes; (4) GDP growth in the home country is not significantly associated with remittances.

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Foreign financial flows, human capital and economic growth in African developing countries

Nguyen

2020

Int. J Fin Econ

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This study investigates the relationship between foreign financial flows (i.e., FDI inflows, ODA, and remittances), human capital, and economic growth in African developing countries. Along with the two‐step system GMM estimator, fixed effect panel quantile regression is applied as a robustness check for the sample of 38 African countries over the period 2002–2017. First, FDI inflows emerge with different impacts on economic growth, depending on the level: negative and positive effects at low and high levels, respectively. Interestingly, these effects are moderated by the human capital of hosting countries. Second, ODA and remittances are found as negative factors for economic growth; notably, higher human capital accumulation of receiving countries reduces these negative impacts. Overall, the results imply that foreign financial flows are correlated differently with human capital in influencing economic growth among African countries. Nevertheless, the significant implications are that more attention must be paid to human capital in these countries, and more feasible policies are urgently needed for better absorption of external capital flows.

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What determine remittances to Pakistan? The role of macroeconomic, political and financial factors

Cited by 45 publications

References 21 publications

The asymmetric impact of oil prices on remittances: evidence from India

The asymmetric impact of oil prices on remittances: evidence from India

Determinants of remittances in Egypt: Do macroeconomic instability and oil price matter?

Foreign financial flows, human capital and economic growth in African developing countries

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