IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2022-01-01.html
   My bibliography  Save this article

Analyzing the Impact of Foreign Remittances uponPoverty: A Case of Uzbekistan from Central Asia

Author

Listed:
  • Farrukh Nawaz Kayani

    (Department of Economics, College of Economics and Management, Al Qasimia University, Sharjah, United Arab Emirates.)

Abstract

Remittances have always played a central role in strengthening the economies of low-income and middle-income developing countries. The remittances have also provided a phenomenal support to the economy of Uzbekistan, which is the third leading recipient country of foreign remittances in the Central Asian region after Kyrgzstan and Tajikistan. There is a strong need to investigate the impact of foreign remittances upon poverty reduction in case of Uzbekistan. This study has empirically investigated the impact of remittances on poverty in Uzbekistan by taking the variables like remittances, poverty size, capital formation, per capita GDP, savings and unemployment for the period of 2008-2019. Ordinary Least Square Regression was applied, and the results show an insignificant relationship between foreign remittances and poverty reduction. The reason could be that remittances in Uzbekistan are not pro-poor as mostly the workers from the rich families migrate to Russia. Furthermore most of the migrant workers prefer to settle down in Russia along with their families.

Suggested Citation

  • Farrukh Nawaz Kayani, 2022. "Analyzing the Impact of Foreign Remittances uponPoverty: A Case of Uzbekistan from Central Asia," International Journal of Economics and Financial Issues, Econjournals, vol. 12(1), pages 1-6.
    • Handle: RePEc:eco:journ1:2022-01-01
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/11967/pdf/29507
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/11967/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jude Eggoh & Chrysost Bangake & Gervasio Semedo, 2019. "Do remittances spur economic growth? Evidence from developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(4), pages 391-418, May.
    2. Kevin Williams, 2016. "Remittances and Financial Development: Evidence from Sub-Saharan Africa," African Development Review, African Development Bank, vol. 28(3), pages 357-367, September.
    3. Bezon Kumar, 2019. "The Impact of International Remittances on Poverty Alleviation in Bangladesh," Remittances Review, Remittances Review, vol. 4(1), pages 67-86, May.
    4. Barbara Dietz & Kseniia Gatskova & Artjoms Ivlevs, 2015. "Emigration, Remittances and the Education of Children Staying Behind: Evidence from Tajikistan," Working Papers 354, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    5. Jakhongir Kakhkharov & Nicholas Rohde, 2020. "Remittances and financial development in transition economies," Empirical Economics, Springer, vol. 59(2), pages 731-763, August.
    6. Chong Siew Huay & Yasmin Bani, 2018. "Remittances, poverty and human capital: evidence from developing countries," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(8), pages 1227-1235, August.
    7. Muhammad Tariq Majeed, 2015. "Poverty Effects of Remittances: a Comparative Analysis," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(1), pages 1-14, January.
    8. Mita Bhattacharya & John Inekwe & Sudharshan Reddy Paramati, 2018. "Remittances and financial development: empirical evidence from heterogeneous panel of countries," Applied Economics, Taylor & Francis Journals, vol. 50(38), pages 4099-4112, August.
    9. SeyedSoroosh Azizi, 2017. "Altruism: primary motivation of remittances," Applied Economics Letters, Taylor & Francis Journals, vol. 24(17), pages 1218-1221, October.
    10. Inoue, Takeshi, 2018. "Financial development, remittances, and poverty reduction: Empirical evidence from a macroeconomic viewpoint," Journal of Economics and Business, Elsevier, vol. 96(C), pages 59-68.
    11. Imtiyaz Ali & Abdul C. P. Jaleel & R. B. Bhagat, 2019. "Migration, Remittances and Poverty Reduction," India Studies in Business and Economics, in: Rajendra P. Mamgain (ed.), Growth, Disparities and Inclusive Development in India, pages 177-190, Springer.
    12. Safaa Tabit & Charaf-Eddine Moussir, 2017. "Impact Of Migrants' Remittances On Economic Growth: Case Of Morocco," Post-Print hal-01449502, HAL.
    13. Anupam Das & Murshed Chowdhury, 2019. "Macroeconomic impacts of remittances in Bangladesh: The role of reverse flows," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(3), November.
    14. Philip L. Martin, 2016. "Migration, Trade and Remittances: Low- and High-Skilled Workers," Remittances Review, Remittances Review, vol. 1(1), pages 39-52, October.
    15. Mubinzhon Abduvaliev & Ricardo Bustillo, 2020. "Impact of remittances on economic growth and poverty reduction amongst CIS countries," Post-Communist Economies, Taylor & Francis Journals, vol. 32(4), pages 525-546, May.
    16. Farrukh Nawaz Kayani & Mehmed Ganic, 2021. "The Impact of Governance on Chinese Inward FDI: The Generalized Method of Moments Technique," Humanities and Social Sciences Letters, Conscientia Beam, vol. 9(2), pages 175-184.
    17. Madeleine Sumption, 2017. "Labour immigration after Brexit: questions and trade-offs in designing a work permit system for EU citizens," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(suppl_1), pages 45-53.
    18. Farrukh Nawaz Kayani, 2017. "A Comparative Study Upon Chinese And Turkish Inward Foreign Direct Investment," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(1), pages 69-77.
    19. Natalie Zotova & Jeffrey H. Cohen, 2016. "Remittances and their social meaning in Tajikistan," Remittances Review, Remittances Review, vol. 1(1), pages 5-16, October.
    20. Farrukh Nawaz Kayani & Mehmed Ganic, 2021. "The Impact of Governance on Chinese Inward FDI: The Generalized Method of Moments Technique," Humanities and Social Sciences Letters, Conscientia Beam, vol. 9(2), pages 175-184.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zeynep Gizem Can & Hakki Ciftci, 2022. "International Remittances and Poverty: Blessing or Curse?," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(6), pages 544-561, June.
    2. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.
    3. Farrukh Nawaz Kayani, 2022. "A Resilient China Amid COVID-19 Pandemic Crisis: Innovative Lessons for Other Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 135-142, September.
    4. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    5. Bayar, Yilmaz & Sakar, Emre, 2021. "Impact of Domestic Public Borrowing on Financial Development: Evidence from EU Transition Economies," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(1).
    6. Anca Mehedintu & Georgeta Soava & Mihaela Sterpu, 2019. "Remittances, Migration and Gross Domestic Product from Romania’s Perspective," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    7. Mantu Kumar Mahalik & John Nkwoma Inekwe & Kuntal K. Das & Umakant Dash & Augustine C Arize, 2022. "Does the Pattern of Age Dependency Matter in the Promotion of Financial Development in an Emerging Economy?," Working Papers in Economics 22/06, University of Canterbury, Department of Economics and Finance.
    8. Ibrahim Sirkeci & Andrej Přívara, 2017. "Cost of Sending Remittances from the UK in the Aftermath of the Financial Crisis," Remittances Review, Remittances Review, vol. 2(1), pages 47-56, May.
    9. Abbas, Syed Ali & Selvanathan, Eliyathamby A. & Selvanathan, Saroja & Bandaralage, Jayatilleke S., 2021. "Are remittances and foreign aid interlinked? Evidence from least developed and developing countries," Economic Modelling, Elsevier, vol. 94(C), pages 265-275.
    10. Christiana Afriyie Manu & Peter Arhenful & Mathew Owusu-Mensah, 2023. "Does Financial Development in Relation to Remittances influence Economic Growth in Sub-Saharan Africa?," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-17.
    11. Louis Bernard Tchekoumi & Patrick Danel Nya, 2023. "Remittances and economic growth: What lessons for the CEMAC zone?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2191448-219, December.
    12. Abbas, Syed Ali & Selvanathan, Saroja & Selvanathan, Eliyathamby A., 2023. "Structural transformation, urbanization, and remittances in developing countries: A panel VAR analysis," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 55-69.
    13. Jamiu Adetola Odugbesan & Tomiwa Adebayo Sunday & Gbolahan Olowu, 2021. "Asymmetric effect of financial development and remittance on economic growth in MINT economies: an application of panel NARDL," Future Business Journal, Springer, vol. 7(1), pages 1-9, December.
    14. Hem C. Basnet & Bishwa Koirala & Kamal P. Upadhyaya & Ficawoyi Donou-Adonsou, 2021. "Workers’ remittances and financial development: the case of South Asia," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 68(2), pages 185-207, June.
    15. Iordache Mihaela & Matei Mihaela & Țiţan Emilia, 2023. "Global Connections: Examining the Role of Remittances in Economic development," Journal of Social and Economic Statistics, Sciendo, vol. 12(2), pages 53-71, December.
    16. Waliu O. Shittu & Gazi M. Hassan & Frank G. Scrimgeour, 2023. "COVID-19 and the Role of Remittances on Sustainable Development: Insights from Sub-Saharan Africa," Working Papers in Economics 23/05, University of Waikato.
    17. Boburmirzo Ibrokhimov & Rashid Javed & Mazhar Mughal, 2023. "Migrants remittances and fertility in the Post-Soviet states," Post-Communist Economies, Taylor & Francis Journals, vol. 35(6), pages 574-596, August.
    18. Ahsan Ullah, 2017. "Do remittances supplement South Asian development?," Remittances Review, Remittances Review, vol. 2(1), pages 31-45, May.
    19. Shreya Pal, 2023. "Does Remittance and Human Capital Formation Affect Financial Development? A Comparative Analysis Between India and China," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(2), pages 387-426, June.
    20. Kim, Jounghyeon, 2021. "Financial development and remittances: The role of institutional quality in developing countries," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 386-407.

    More about this item

    Keywords

    Foreign Remittances; Poverty Reduction; Uzbekistan; Russia; Central Asia;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2022-01-01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.