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Cyclical Properties of Migrant's Remittances to Pakistan: What the data tell us

Author

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  • Junaid Ahmed

    (Development Economics Research Group)

Abstract

Migrant's remittances are a growing source of foreign funds for several developing countries including Pakistan. Despite a burgeoning body of literature and growing interest in migrants' remittances and its impact on recipient's economies, relatively little work exists on the business cycle characteristics of remittances to Pakistan. This study analyzes whether remittance act pro- or counter-cyclically in the face of external and internal economic shocks by employing annual data from 1973-2010 for Pakistan. The results show that migrant's remittances are counter-cyclical with respect to home output and households consumption. Remittances are found to be acyclical with the output of Pakistan's major remittances sources such as the United States and United Kingdom. Remittances from Saudi Arabia, however, show mixed results. The overall impact of remittance inflows to Pakistan appears to be a stabilizing one.

Suggested Citation

  • Junaid Ahmed, 2012. "Cyclical Properties of Migrant's Remittances to Pakistan: What the data tell us," Economics Bulletin, AccessEcon, vol. 32(4), pages 3266-3278.
    • Handle: RePEc:ebl:ecbull:eb-12-00672
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    References listed on IDEAS

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    Cited by:

    1. Ghorpade, Yashodhan, 2017. "Extending a Lifeline or Cutting Losses? The Effects of Conflict on Household Receipts of Remittances in Pakistan," World Development, Elsevier, vol. 99(C), pages 230-252.
    2. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.
    3. Omneia HELMY & Chahir ZAKI & Aliaa ABDALLAH, 2020. "Do Workers’ Remittances Promote Consumption Stability In Egypt?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 20(2), pages 127-144.
    4. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2013. "Blessing or curse: The stabilizing role of remittances, foreign aid and FDI to Pakistan," University of Göttingen Working Papers in Economics 153, University of Goettingen, Department of Economics.
    5. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.
    6. Farid Makhlouf & Refk Selmi, 2024. "‘From aspirations for climate action to the reality of climate disasters’: Can remittances play key role in disaster response?," The World Economy, Wiley Blackwell, vol. 47(8), pages 3487-3510, August.
    7. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.
    8. Amar Iqbal Anwar & Mazhar Mughal, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers hal-01885149, HAL.
    9. Junaid Ahmed & Inmaculada Martinez-Zarzoso, 2016. "Blessing or Curse," Journal of South Asian Development, , vol. 11(1), pages 38-66, April.

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    More about this item

    Keywords

    migrant's remittances; business cycle; real output; households consumption; Pakistan.;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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