Exploring the Determinants of Worker’s Remittances: An Application of LASSO Technique

Abstract

Remittances are a significant source of foreign income in Pakistan. In order to maintain the level of remittances stables there is need to explore the significant determinants of worker’s remittances. Therefore, LASSO technique is adopted to define the potential features of worker remittances. ARDL bound test has been applied to explore the long run and short run effect of potential determinants on workers’ remittances. The results suggest in the long run the internal conflicts and investment return of Pakistan have negative, whereas, the real effective exchange rate, external conflicts and major agricultural crops have positive impact on workers’ remittances of Pakistan.

The impact of social and monetary diaspora remittances on society and economy of home countru: The case of Serbia

“…Besides government policy, there is a number of macroeconomic determinants influencing remittance flows, among which are the level of economic activity both in the host country and the Motherland, including "domestic income, the wage rate, the rate of inflation, black market exchange rates, interest rate differentials, secure means of transferring remittances, and the efficiency of the banking system" (Buch et al, 2002, p. 6). Also, the number of migrant workers abroad, the share of temporary migrants in total migrants, and their wages are determinants of worker remittances (Bunduchi et al, 2019;Hina and Ullah, 2021;Jijin et al, 2022) In addition to these macroeconomics, Buch et al (2002) list the following microeconomic determinants: (i) the education and the income level of the migrant and his family, (ii) the length of actual or expected stay of the migrant abroad, (iii) the number of dependents at home, and (iv) marital status.…”

“…6). Такође, детерминанте дознака радника су и број радника миграната у иностранству, удео привремених миграната у броју укупних миграната, као и њихове зараде (Bunduchi et al, 2019;Hina & Ullah, 2021;Jijin et al, 2022). Осим ових, макроекономских, Buch et al (2002) наводе следеће микроекономске детерминанте: (i) образовање и ниво прихода мигранта и његове породице, (ii) дужина стварног или очекиваног боравка мигранта у иностранству, (iii) број издржаваних лица код куће, и (iv) брачни статус.…”