INTRODUCTION:
Remittances typically refer to transfers of money by foreign workers to their home countries. Remittances are not a new phenomenon in the world, being a normal associated to migration which has always been a part of human history. Remittances are playing an important role in the economies of many developing and low income countries. Pakistan is a labour abundant country; hence, as neoclassical theory shows, if workers are unable to find jobs and/or wages to satisfy their needs, they will look elsewhere. Pakistan’s history provides us with a new trend of emigration nearly each decade. Remittance is an important source of foreign exchange earnings for Pakistan since 1970. During the past four decade Pakistan received significant amount of remittances, however, fluctuation were also observed in the inflow of remittances. Inflow of remittances affects economic growth positively by reducing current account deficit, improving the balance of payment position and reducing dependence on external borrowing (Iqbal and Sttar, 2005).
Pakistan like other developing countries in the world is known for its high migration and workers’ remittance. It is argued that this high migration is the result of poor economic conditions of the country because the economy is facing so many problems like unemployment, illiteracy, poverty, inflation, and terrorism etc. The people of Pakistan are migrating to foreign countries in search of job and to change their living standards. It is also argued that due to the high level of unemployment individuals are going abroad to get the employment and livelihood for their family and this unemployment is creating the problem of brain drain.
The effect of remittances is not only multidimensional but in ...
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This essay will discuss the issue of migration. Migration is movement by humans from one place to another. There are two types of migration, it is immigration and emigration. Immigration is movement by people into the country and emigration is movement by humans, who want to leave countries voluntary or involuntary. Economic, religious, education, social and economic problems are reasons for migration.
Cabral, R. (2013). A perspective on the symptoms and causes of the financial crisis. Journal of Banking & Finance, 37, 103-117
This essay will define and explain the term migration and then discuss and examine emigration and circulation as well as arrivals. Further its going present some qualitative and quantitative evidence from the book “Understanding Social Lives” and the online module strands to support the claim.
In Pakistan, people are stricken with poverty, the economy is unstable, and there are no opportunities to fulfill one’s goals. The U.S. economy is abundant and ripe with jobs. The only attribute is that one has to go out and want a job. Pakistan is more of a follower than a leader. It essentially adopts America’s ideals, but does not attain them. The poverty and unemployment rates are increasing daily. In many cases, one person works in the family and rest of the individuals sit back and play cricket or watch movies all day long. There is no hope of becoming a self-made person. The system is backwards and I think it requires a change. In contrast, living in Ameri...
... allows these migrants to gain access to foreign natural resources, goods and services. Accumulation of wealth over time enables these international African migrants to provide financial resources in the form of remittances to their country of origin. Rural households may become heavily dependent on remittances and unexpected events such as a global financial crisis would result in higher rates of unemployment especially amongst migrant workers, therefore decreasing the flow of remittances. On the other hand remittances may provide capital for entrepreneurs, so Africans may sometimes diversify their sources of income from initially receiving remittances. Research shows that remittances impact the typical African individual more effectively and that remittance flows better stability than both investments and foreign aid to Africa during the most recent global crisis.
Individuals who leave Mexico for the United States are by and large escaping destitution and seeking after budgetary fortune. In diminishing the weight made by huge assemblies of unemployed men and ladies, movement to the US is helpful to Mexico. Migration likewise profits Mexico as settlements, cash sent home by relatives working in the US. Remittances mak...
If financial markets are instable, it will lead to sharp contraction of economic activity. For example, in this most recent financial crisis, a deterioration in financial institutions’ balance sheets, along with asset price decline and interest rate hikes increased market uncertainty thus, worsening what is called ‘adverse selection and moral hazard’. This is a serious dilemma created before business transactions occur which information is misleading and promotes doing business with the ‘most undesirable’ clients by a financial institution. In turn, these ‘most undesirable’ clients later engage in undesirable behavior. All of this leads to a decline in economic activity, more adverse selection and moral hazards, a banking crisis and further declining in economic activity. Ultimately, the banking crisis came and unanticipated price level increases and even further declines in economic activity.
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Secondly, remittances which from immigrant workers also bring significant benefits to many countries. The UN report said the total amount of money that immigrant workers worldwide sent back to their country in 2011 was more than $ 300 billion (increased several times compared with $ 102 million in 1995). This source of...
Secondly, there are various disadvantages of immigration for countries like overpopulation, illegal immigration, brain- drain and impact on labor market. In today’s globalized era, most of the well educated people move to other country for better wages, better atmosphere as well as good accommodation. Moreover, it’s a big threat to their origin gradually they lose professional work
Labor migration has created jobs for millions of Filipinos; however, its success shadows its real cause. Unemployment in itself alone has many diminishing factors for growth and development. The cycle of problems in the country continues to grow which include migration, unemployment, poverty, and underemployment. This paper will aim to illustrate the effects of international migration on unemployment status. The issue of high unemployment is a great factor in the development of the country and is generally affected by several elements such as lack of job opportunities, population growth, the annual increase in the labor force insufficiently met by the labor market, and particularly more attractive prospects in developed countries (Brooks, 2002).
This past summer, seasonal floods across Pakistan killed more than 67 people and displaced thousands. Similar events has been constantly plaguing millions of people in Pakistan for the past five years, where this country has experienced unusual severe monsoon rains in the summer. One of such event was the devastating floods in 2010, which displaced an outrageous 11 million people. This report will examine how much impact the 2010 floods had on Pakistan 's population and it will inspect the displacement this devastating disaster caused. Furthermore, this report will also explore the economic and social consequences of the floods, reasons for migration, different types of migration, issues caused by migration and obstacles preventing the population
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One of studies to explore the locational determinants with reference to Pakistan is done by Akthar (2000). He uses the technique of the multivariate regression to determine the determinants. He uses the market size (openness to trade), relative interest rate and exchange rate, political instabil...