EconPapers    
Economics at your fingertips  
 

Remittances Flow to Pakistan: A Gravity Approach

Shujaat Abbas ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates macroeconomic determinant and potential of remittances flow to Pakistan from selected 12 major partners, using the augmented Gravity model on panel framework from 1995 to 2012. The Generalized Least Square technique is used to explain the macroeconomic behaviour of remittances flow. The result shows that the standard Gravity variables explain the remittances flow, and the result of augmented variables shows that the real exchange rate and inflation rate have significant positive, whereas the interest rate has significant negative impact. The binary variable for common language and GCC shows significant positive impact indicating importance of the Gulf region and common language for remittances flow. The potential of remittance flow shows existence of high potential in Japan, Germany, Norway, Qatar and Kuwait respectively. It urges Pakistan to send migrant workers to potential economies, and make domestic environment investment friendly and reduce interest rate to encourage remittances

Keywords: remittances flow; gravity model; panel data; Pakistan (search for similar items in EconPapers)
JEL-codes: F2 F22 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Published in Journal Transition Studies Review 1.23(2016): pp. 97-106

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/107244/2/MPRA_paper_107244.pdf original version (application/pdf)

Related works:
Journal Article: Remittances Flow to Pakistan: A Gravity Approach (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107244

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2022-05-24
Handle: RePEc:pra:mprapa:107244