What Drives Remittances from Saudi Arabia to Pakistan? Home Versus Host Country's Economic Conditions

Datos Bibliográficos

ID9953739
AutoresMuhammad Umair (0000-0001-8159-0054, University of Karachi Pakistan, autor de correspondencia), Abdul Waheed (0000-0002-6667-4660, University of Bahrain Kingdom of Bahrain)
Año2017
Volumen55
Número4
Páginas141-153
Fecha de publicación2017-05-09
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaInternational Migration (JOURNAL)
Identificadores de la revistaISSN: 0020-7985 • E-ISSN: 1468-2435
EditorialWiley (PUBLISHER • GB)
DOI10.1111/imig.12344
OpenAlexW2612315513
IdiomaEN
Citas recibidas4
Referencias citadas26

Saudi Arabia is the largest source country of remittances to Pakistan since the 1970s. This study examined the impact of home versus host country’s economic conditions on remittances from Saudi Arabia to Pakistan. The ARDL bounds testing is used on the annual data set from 1973 to 2014. The study concluded that economic growth in the host country and economic crises in the home country increase remittances. 1% decrease in domestic output increases remittances by 2.79% while 1% increase in sending country’s output growth increases remittances by 5.2% in the long‐run. The bilateral trade has a positive while financial deepening has a negative impact on inflows. The impact of oil shock is insignificant. We suggest cautious foreign policy as remittances depend significantly on the host country’s economic condition that is not directly under the control of the home country but remittances can be sustained with bilateral trade

Demographic economics · Developing country · Development economics · Economic growth · Economics · International economics · Monetary economics · Shock (circulatory · Short run · Global trade and economics · Migration and Labor Dynamics · Socioeconomic Development in MENA