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Archives of Business Research – Vol. 9, No. 8
Publication Date: August 25, 2021
DOI:10.14738/abr.98.9066. Islam, A., & Rokonuzzaman. (2021). Impact of Outflows Migration on Inflows Remittance of Different Countries in SAARC Region.
Archives of Business Research, 9(8). 56-63.
Services for Science and Education – United Kingdom
Impact of Outflows Migration on Inflows Remittance of Different
Countries in SAARC Region
Md Ashraful Islam
Department of Statistics, University of Chittagong, Bangladesh
Md Rokonuzzaman
Department of Statistics, University of Chittagong, Bangladesh
ABSTRACT
The main objective of the study is to determine the impact of migration on
remittance for some different countries in SAARC region. Country wise yearly data
of outflows migrations and inflows remittances from 1990 to 2017 are collected
from 6 countries in SAARC region which are considered in the analysis. To complete
this study, some statistical analysis like as multivariate analysis and panel analysis
are computed. The highest number of average migrant is found in India with yearly
average number of out migrant is 209992 and average inflow remittances is
33214.45 million US dollars which is also high among these six countries, whereas
the lowest number of out migrated people are found in Maldives with a yearly
average number of migrants is 437 and the amount of average inflows remittances
is 3.08 million US dollars which is also lowest among in SARRC countries. India,
Bangladesh and Pakistan are comparatively high out migrated countries as well as
high remittance receiving countries. In MANOVA analysis, significant Hotelling
�! test statistic indicates the population mean vector with migration and
remittances for different countries in SAARC region are not equal. LM test statistic
supported to run a panel regression model for analyzing the data. Furthermore
significant Hausman test statistic suggests for analyzing fixed effect panel
regression model. Outputs from panel regression model show that there have
significant positive contributions of migration for all of these countries to the
remittance. i.e. if the outflows migration of these region increases, the yearly
average inflows remittance will be increased. Considering Bangladesh as a base
country in dummy variable regression model in panel analysis, all others countries
have significant contribution of migrations to remittances compared with that of
Bangladesh. One can use simulation study for getting fruitful results. Also the
researcher can apply discrimination analysis to get better results.
Key Words: Inflows Remittance, Outflows Migration, Fixed effect model, MANOVA,
Hotelling �!.
STATE OF ARTS
Internal migration refers to a change of residence within national boundaries, such as between
states, provinces, cities, or municipalities or an internal migrant is someone who moves to a
different administrative territory. International migration refers to change of residence over
national boundaries or their classified as legal immigrants, illegal immigrants, and refugees
which are a complex phenomenon that touches on a multiplicity of economic, social and
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Archives of Business Research (ABR) Vol. 9, Issue 8, August-2021
Services for Science and Education – United Kingdom
governments and regulators because informal remittances are not only ineffective to promote
productive financial intermediations, but also can be sources for smuggling, money laundering,
and other illegal activities. Concerted efforts by the governments, regulators and financial
sectors are required in addressing legal and policy constraints, improving formal financial
systems, and enhancing customer education to significantly expand formal remittance markets
and achieve financial inclusion. Haas (2007) shows the relationship between remittances and
various dimension of social development within a broader conceptual framework of migration
and development theory. Migration and remittances also have the potential to improve well- being, stimulate economic growth and reduce poverty directly and indirectly, while their effects
on inequality are much more ambiguous. Here they discussed the level of remittances, both
formal and informal, and their geographical distribution. It also discerns types and personal
characteristics of migrants as remitters. The World Bank (2006) explores the gains and losses
from international migration from the perspective of developing countries, with special
attention to the money that migrants send home. Another goal was to consider policy initiatives
that could improve the developmental impact of migration, again with particular attention to
remittances. The report focuses on policies to improve the developmental impact of
remittances. Katsushi (2012) in their work on Remittances growth and poverty, new evidence
from Asian countries generally confirmed that remittance has positive impact on economic
growth, the work also found a positive impact of remittance on poverty alleviation. Fayissa
(2010) found a positive impact of remittance on economic growth of countries where the
financial systems are underdeveloped. According to them, with less developed financial system
funds from remittance offer an alternative to finance investments and help overcome liquidity
constraints. A study by IMF(2005) for the time period 1970-2003, finds no significant
relationship between remittances sent by migrants and growth as well as between remittances
and education and investment rates.
A summary insight from the review is that the relationship between migration and remittances
not clear cut. A number of factors come together to influence the cause-effect relationship
between International outflows migration and Inflow remittances. Thus the impact of
international migration to remittance for SARRC countries is to investigate with the following
objectives:
v To examine the status of outflows migration and inflows remittances of six countries
v To evaluate the relationship between international migration and remittances.
v To examine the impact of international migration to remittances of six countries
On the basis of these objectives, the study has been organized into some distinct and well- structured sections for understanding the present scenario of outflows migration and inflows
remittances in SAARC countries. Data and methodology is discussed in next section, then
discuss about findings and in the final section, conclusion of the study is discussed.
DATA AND METHODOLOGY
Data are the essential part for all the scientific research. The demand for good quality of
statistical data is being continuous to increase. In this study, yearly inflows remittance and
outflow migrations data from 1970 to 2017 of Bangladesh, India, Maldives, Nepal, Pakistan,
SriLanka were collected from world bank data bank are considered in this analysis. Due to
unavailability of data Afghanistan and Bhutan are excluded from this analysis. Descriptive
statistics and line graph are shown to get general scenario. MANOVA is used in this analysis for