Consequences of worker�s remittances on human capital: an in-depth investigation for a case of Pakistan
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Date
2013
Journal Title
Journal ISSN
Volume Title
Publisher
IDOSI Publications
Abstract
Purpose: This paper aims to empirically investigate the consequences of worker remittances on
human capital formation in case of Pakistan. Methodology: In order to achieve the target of this study;
Autoregressive Distributed Lag (ARDL) Bounds Testing Approach is used for the period from 1981-2011.
Findings: The findings of this study have exposed that worker’s remittances have an adverse impact on human
capital formation. The coefficient of worker’s remittances is significant at 5 percent level of significance. One
important justification for the deteriorating impact of worker’s remittances on human capital formation is the
negligence of parental care. Particularly, the absence of father or any other close relative from home leads to
situations where there can be no checks on the outside home activities of the children. Also, the cultural
constraints in the country restrict mothers or any female member of the household to go outside to look after
their children’s activities. Therefore; the positive impact of worker’s remittances in the form of inflow of income
is offset by the adverse impact of the negligence of the parental care and hence, human capital is showing
adverse performance rather improving. Originality/ Novelty: There is hardly any empirical study which
investigates the consequences of worker’s remittances on human capital formation in case of Pakistan.
This is an attempt which may fill this gap.
Description
Keywords
Pakistan, Worker’s Remittances, Human Capital, Foreign Direct Investment
Citation
Hassan, M. U., H. Mehmood, et al. (2013). "Consequences of Worker’s Remittances on Human Capital: An In-Depth Investigation for a Case of Pakistan." Middle-East Journal of Scientific Research 14(3): 443-452.