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Do Workers’ Remittances Boost Human Capital Development?

Author

Listed:
  • Muhammad Azam

    (School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia and Department of Economics, Abdul Wali Khan University, Mardan)

  • Syed Ali Raza

    (Department of Management Sciences, IQRA University, Karachi)

Abstract

This study examines the influence of workers’ remittances along with the economic governance system on human capital development in 17 countries having low income, lower middle, upper middle and high income levels by using the annual panel between 1996 and 2013. Overall, results of fixed-effects model reveal that workers’ remittances have significantly positive impact on the human capital development. Results also reveal the positive and significant impact of all selected variables of economic governance system on human capital. It is concluded that the strong economic governance system strengthens the association between workers’ remittances and human capital during the aforementioned time period.

Suggested Citation

  • Muhammad Azam & Syed Ali Raza, 2016. "Do Workers’ Remittances Boost Human Capital Development?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(2), pages 123-149.
    • Handle: RePEc:pid:journl:v:55:y:2016:i:2:p:123-149
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    File URL: http://www.pide.org.pk/pdf/PDR/2016/Volume2/123-149.pdf
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    3. Chengjuan Xia & Md. Qamruzzaman & Anass Hamadelneel Adow, 2022. "An Asymmetric Nexus: Remittance-Led Human Capital Development in the Top 10 Remittance-Receiving Countries: Are FDI and Gross Capital Formation Critical for a Road to Sustainability?," Sustainability, MDPI, vol. 14(6), pages 1-24, March.
    4. Abdullah Mohammed Al-Malki & Mehboob-Ul Hassan & Jabbar Ul-Haq, 2023. "Nexus between remittance outflows and economic growth in GCC countries: the mediating role of financial development," Applied Economics, Taylor & Francis Journals, vol. 55(46), pages 5451-5463, October.
    5. Emad Kazemzadeh & José Alberto Fuinhas & Narges Salehnia & Fariba Osmani, 2023. "The effect of economic complexity, fertility rate, and information and communication technology on ecological footprint in the emerging economies: a two-step stirpat model and panel quantile regressio," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 737-763, February.
    6. Syed Ali Raza, Mohd Zaini Abd Karim, 2016. "Do Liquidity and Financial Leverage Constrain the Impact of Firm Size and Dividend Payouts on Share Price in Emerging Economy," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 1(2), pages 71-86, October.
    7. Emad Kazemzadeh & José Alberto Fuinhas & Matheus Koengkan & Fariba Osmani, 2022. "The Heterogeneous Effect of Economic Complexity and Export Quality on the Ecological Footprint: A Two-Step Club Convergence and Panel Quantile Regression Approach," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    8. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.

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    More about this item

    Keywords

    Remittances; Economic Governance System; Human Capital Development;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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