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

Umair, Muhammad; Waheed, Abdul

doi:10.1111/imig.12344

Cited by 18 publications

(31 citation statements)

References 29 publications

(27 reference statements)

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“…Finally, works by Al‐Mashat and Billmeier (), Singh (), ILO (), and Makhlouf and Kasmaoui (), find that an increase in oil prices is positively associated with remittance inflows to Egypt, India, Bangladesh and, Morocco, respectively. Contrary to the studies mentioned above, Gupta () and Umair and Waheed () demonstrate that the changes in oil prices do not significantly influence remittance flows to India and to Pakistan, respectively. All aforementioned studies have thoroughly investigated the symmetric (linear) relationship between oil prices and remittances.…”

Section: Introductionmentioning

confidence: 72%

“…To assess the asymmetric effect of oil prices on international remittances to India, we use the time series data for the 1975–2017 period. Following Lueth and Ruiz‐Arranz (), Singh (), Al‐Mashat and Billmeier (), Umair and Waheed (), Makhlouf and Kasmaoui (), and Mallick () the linear unrestricted error correction model specified as:

\begin{matrix} Δ r e m_{t} = α_{0} + α_{1} r e m_{t - 1} + α_{2} y_{t - 1} + α_{3} f d_{t - 1} + α_{4} e x c_{t - 1} + α_{4} o i l p_{t - 1} + {false\sum}_{i = 1}^{m} α_{5} normalΔ r e m_{t - i} \\ + {false\sum}_{i = 1}^{n} α_{6} normalΔ y_{t - i} + {false\sum}_{i = 1}^{p} α_{7} normalΔ f d_{t - i} + {false\sum}_{i = 1}^{r} α_{8} normalΔ e x c_{t - i} + {false\sum}_{i = 1}^{s} α_{9} normalΔ o i l p_{t - i} + ε_{t} \end{matrix}

…”

Section: Empirical Methodology and Datamentioning

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: Introductionmentioning

confidence: 72%

\begin{matrix} Δ r e m_{t} = α_{0} + α_{1} r e m_{t - 1} + α_{2} y_{t - 1} + α_{3} f d_{t - 1} + α_{4} e x c_{t - 1} + α_{4} o i l p_{t - 1} + {false\sum}_{i = 1}^{m} α_{5} normalΔ r e m_{t - i} \\ + {false\sum}_{i = 1}^{n} α_{6} normalΔ y_{t - i} + {false\sum}_{i = 1}^{p} α_{7} normalΔ f d_{t - i} + {false\sum}_{i = 1}^{r} α_{8} normalΔ e x c_{t - i} + {false\sum}_{i = 1}^{s} α_{9} normalΔ o i l p_{t - i} + ε_{t} \end{matrix}

…”

Section: Empirical Methodology and Datamentioning

confidence: 99%

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

Akçay

Karasoy

2019

OPEC Energy Review

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“…The literature on oil price and remittances flow to Pakistan is nascent with a few studies that have explored only the linear relationship, (Umair and Waheed 2017). This study expands the literature of remittances in Pakistan by exploring the asymmetric impact of changing crude oil prices.…”

Section: Introductionmentioning

confidence: 90%

Impact of oil prices on remittances to Pakistan from GCC countries: evidence from panel asymmetric analysis

Abbas

2020

OPEC Energy Review

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International migration and remittances from oil-exporting Gulf countries are important sources of employment, income, and foreign exchange for Pakistan. This study investigates the asymmetric impact of oil prices on remittances to Pakistan from GCC countries, over the period 1980 to 2018, by employing the recently advanced non-linear panel Pooled Mean Group (PMG) model. The findings show that oil prices and remittance are asymmetrically associated. The increasing oil prices have a significant positive effect only in the long run; whereas, reducing oil prices reveal a significant negative effect only in the short run. Findings of other explanatory variables show that the economic condition in host countries, exchange rate, and trade relations have positive effects only in the long run; whereas the economic condition in the home country has significant negative effects in the long run and positive effect in the short run. This study urges oil exports to stabilize oil supply and prices, and Pakistan to enhance trade relations, exchange rate adjustments, and financial development..

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“…In contrast, taking Egypt as a case study, Khodeir () documented that higher oil prices and remittances are negatively associated. Finally, Gupta () and Umair and Waheed () provided evidence that the movements in oil prices do not significantly affect international remittances to India and Pakistan, respectively.…”

Section: Impact Of Macroeconomic Instability and Oil Prices On Remittmentioning

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%

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

Cited by 18 publications

References 29 publications

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

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

Impact of oil prices on remittances to Pakistan from GCC countries: evidence from panel asymmetric analysis

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

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