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

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  • Abbas, Shujaat

Abstract

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

Suggested Citation

  • Abbas, Shujaat, 2020. "Impact of oil prices on remittances to Pakistan from GCC countries: evidence from panel asymmetric analysis," MPRA Paper 107246, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107246
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    Cited by:

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    2. Anthony Enisan Akinlo & Michael Segun Ojo, 2021. "Examining the asymmetric effects of oil price shocks on remittances inflows: evidence from Nigeria," SN Business & Economics, Springer, vol. 1(10), pages 1-16, October.
    3. Hao Xiong & Wen Shi & Shilin Xu & Huayu Shen, 2021. "Impact of COVID-19 on Corporate Liabilities in the Energy & Power Industry," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 2(1), pages 1-4.
    4. Alshammari Nayef & Faras Reyadh & Alshuwaiee Wael, 2022. "Economic and Political Drivers of Remittance Transfer," South East European Journal of Economics and Business, Sciendo, vol. 17(1), pages 54-67, June.
    5. Waqas Bin Khidmat & Nayar Rafique & Muhammad Umar, 2024. "Economic policy uncertainty and remittances: mediating role of foreign exchange rate," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-30, August.
    6. Selçuk Akçay, 2021. "Are Oil Prices and Remittance Outflows Asymmetric? Evidence From Saudi Arabia," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 1(1), pages 1-1.
    7. P. Jijin & Alok Kumar Mishra & M. Nithin, 2022. "Macroeconomic determinants of remittances to India," Economic Change and Restructuring, Springer, vol. 55(2), pages 1229-1248, May.
    8. Akinlo, Anthony Enisan, 2024. "Oil Price Shocks and Income Inequality in Nigeria: Evidence from Nonlinear ARDL Approach," African Journal of Economic Review, African Journal of Economic Review, vol. 12(1), March.

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    More about this item

    Keywords

    Energy prices; remittances flow; asymmetric analysis; panel data; Pakistan;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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