IMPACT OF PAKISTANI LABOR MIGRANT NETWORK ON PAKISTAN’S INTERNATIONAL TRADE WITH THE MIDDLE EAST

Shabir Hyder, Saddam Hussain, Imran Malik, Muhammad Anees, Answer Khan

Abstract


Emigrants possess knowledge of host and sending countries’
cultures and social environments that can help strengthen the
economic relationship between them. We find this to be true for
Pakistan and its selected Middle East trading partners for whom the
data are available. Gravity model estimates suggest that each
Pakistani emigrant contributed $422 to exports. This increase in
exports can be attributed to Pakistani emigrants’ superior knowledge
of both countries environment as well as their help in reducing
transaction costs in trade. This study should be helpful to policy
makers, who generally consider migrants to be the source of
remittances only, while our study showed that migrants help broaden
our international trade as well.


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DOI: http://dx.doi.org/10.22555/pbr.v18i2.835

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