Emigration and Trade Creation in Pakistan
Author: Noureen Fatima

This study investigates the impact of emigration on exports of Pakistan for the period 1987-2008. The study is based on21 selected countries where the Pakistani emigrants like to settle on the priority basis. More specifically, the study analyses whether the supply capacity variables (of home country), market capacity variables (host countries) and domestic economic performance variables (of home country) do affect the volume of export. An independent variable of total number of emigrants has also been included to asses the impact of emigration on export creation. In order to select between fixed effect and random effect models, after the estimation of the model Hausman test is applied. The results of the Hausman test, in this study, go in favor of the fixed effect model. The results reflect the fact that with one percent rise in the emigration from Pakistan, there is 0 .2 percent rise in exports of Pakistan. The results also reveal that, it is of critical importance to maintain a high and sustainable economic growth rate. The study shows that the sustainable growth patterns promote exports. Widening of the net of communication facilities is also instrumental in exports growth. In addition to that, as Pakistan is a labor-exporting country, the results help to strengthen the idea that more opportunities for the Pakistani people exiting from the country can bring fruitful results in terms of export growth. Hence, the results and policy suggestions of this study are expected to benefit the policy makers in formulation of the export policy for Pakistan visa– vis the other 21 countries Supervisor:- Dr. Zafar Mahmood

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Keywords : Emigration, Pakistan, Trade Creation
Supervisor: Zafar Mahmood

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