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

Dados Bibliográficos

ID9953739
AutoresMuhammad Umair (0000-0001-8159-0054, University of Karachi Pakistan, autor correspondente), Abdul Waheed (0000-0002-6667-4660, University of Bahrain Kingdom of Bahrain)
Ano2017
Volume55
Fascículo4
Páginas141-153
Data de publicação2017-05-09
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoInternational Migration (JOURNAL)
Identificadores do periódicoISSN: 0020-7985 • E-ISSN: 1468-2435
EditoraWiley (PUBLISHER • GB)
DOI10.1111/imig.12344
OpenAlexW2612315513
IdiomaEN
Citações recebidas4
Referências 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