How the GCC Economic Crises Effect Labor Migration: Evidence from Pakistan


Yasir Khan, Wang Mingyi

Abstract


Migrant workers have participated in promoting economic growth and prosperity and the generation of wealth in countries of destination. The Gulf Cooperation Council (GCC) which is comprised of six countries such as Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman have been historically and traditionally job market for Pakistani workers. Labor migration and its relationship to economic growth and employment have received increasing attention because of increasing demand for labor, higher salaries, economic and political stability. Using a case study, we focus on the impact and relationship of labor migration with macroeconomic indicators such as Gross Domestic Product (GDP), unemployment, and inflation rate. Limited employment opportunities, the weak economy, and political instability are the factors leading labor migration from Pakistan. Consequently, the government of Pakistan considered labor migration primarily as an employment sector and encourage labor migration to solve economic problems in the country. We analyze the impact of labor migration on (GDP), Inflation rate and unemployment in Pakistan with the help of time series data from 1971-2016. The result to have showed a positive and significant relationship between labor migration and GDP, while a negative but significant relationship with unemployment. On the other hand, there is no relationship between labor migration and inflation rate. we found that the GCC economic crises actually caused significant influence on labor migration in the case of Pakistan.

Keywords


Foreign direct investment (FDI), Pakistan, GCC, GDP, Unemployment, Inflation rate, VECM.

| PDF |


About this article

Title

How the GCC Economic Crises Effect Labor Migration: Evidence from Pakistan

Keywords

Foreign direct investment (FDI), Pakistan, GCC, GDP, Unemployment, Inflation rate, VECM.

DOI

10.20448/journal.501.2018.52.139.146

Date

2018-09-10

Additional Links

Manuscript Submission

Journal

Asian Journal of Economics and Empirical Research
Vol 5, No 2 (2018) Page: 139-146

Print ISSN

2518-010X

Online ISSN

2409-2622

Statistics

0 Views | 0 Downloads

Citations

Authors & Affiliations

Yasir Khan
Ph.D. Scholar School of Economics and Management Southeast University 211198
China

Wang Mingyi
Ph.D. Professor School of International Economics and Trade, Shandong University of Finance & Economics
China


Refbacks

  • There are currently no refbacks.


Paper Submission E-mail: info@asianonlinejournals.com; asianonlinejournals@gmail.com

 

Asian Journal of Economics and Empirical Research

 Online ISSN: 2409-2622 | Print ISSN: 2518-010X

 

 

Copyright © Asian Online Journal Publishing Group

To make sure that you can receive messages from us, please add the 'asianonlinejournals.com' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.