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This paper investigates long-run relationship between stock of Pakistani
emigrants working in major destination countries i.e. Gulf, Malaysia and Korea, and
exports of Pakistan. This study use panel unit root and co-integration tests robust to
cross-sectional heterogeneity for 1980 to 2018. The long-run relationship is
estimated using Fully Modified OLS. Besides, panel data estimation is used for panel- based vector error correction model. Results suggest that an annual increase in stock
of Pakistani emigrants in these destination countries increases exports of Pakistan
towards these countries. Additionally, Gross Domestic Product of Pakistan does
not have potential to strengthen exports of Pakistan. Gravity model estimates confirm
robustness of results.
Noureen Fatima, Abdul Jalil. (2021) Testing the Emigration-Exports Nexus: Empirical Evidence from Pakistan, Orient Research Journal of Social Sciences, Volume-06, Issue-1.
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