Economics Of Migration In Pakistan: Micro And Macro Analysis
Author: Noureen Fatima


The present study provides a mix of micro-macro level analysis. Pre-migration analysis is carried out at micro-level. It focus on private cost of migration. Post-migration analysis provides insight into two macro-level analysis. One that represent contribution of migrants through remittances coupled with complementary polices. Other focus on emigrants’ contribution in exports of their home nation. Use of primary-level, crosssectional data of 2019 and OLS helps in finding financial and private opportunity cost of migration. Socio-economic and demographic potentiality determines cost of migration. The study finds that personal traits, visa market and agent mafia are major factors for high migration cost. Emigrants also affect economic growth through foreign remittances. However, there are certain complementary polices without which it is impossible to acquire enhanced benefits of remittances. These policies are in areas of human capital, financial depth, quality of institutions and macroeconomic policies. Use of DMOLs for period 1984-2018, gives comprehensive information regarding impact of remittances necessitated by complementary policies. Empirical analysis for period 1980-2018 is equally important in finding stabilization function of remittances. The study also explores long-term relationship between exports and stock of emigrants from Pakistan for the period 1980-2018. Use of panel unit root, panel co-integration and Fully Modified OLS enhances and vector error correction model (VECM). For panel data, are used. Results indicate that an annual increase in the emigrant’s stock from Pakistan in selected countries for the said period, accounted for a significant increase in export from Pakistan towards those countries. However, had not population of host countries increased significantly, there would have no increase in exports Pakistan. Results also suggest that GDP of Pakistan has potential to strengthen its export structures, creating direct positive impact on economic growth. Gravity model estimates confirm robustness of results. Over time, Pakistan has developed institutions to manage low-cost formal emigration of its workforce abroad and ensure maximum utilization of workers’ remittances. However, Pakistani workers still face challenges during emigration process. This study gives guidelines for promotion of low-cost, safe, orderly and regular emigration. Presence of necessary polices to strengthen role remittances is unavoidable.

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Keywords : Emigrants, Exports, Financial Depth, Human Capital, INSTITUTIONS, REMITTANCES
Supervisor: Abdul Jalil

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