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Determinants of migrants remittances in Malaysia: an ARDL approach

This article analyses what determines remittance inflows into Malaysia. Using the Autoregressive distributed lag (ARDL) approach, the study used time-series data for the period 1987-2018. The study validated the theory that remittance inflows ought to be encouraged through determinants such as real...

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Main Authors: Elijah, Sunday, Hamzah, Hanny Zurina, Hook, Law Siong, Kaliappan, Shivee Ranjanee
Format: Article
Published: Iran University of Science and Technology 2024
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spelling oai:psasir.upm.edu.my:106140 http://psasir.upm.edu.my/id/eprint/106140/ Determinants of migrants remittances in Malaysia: an ARDL approach Elijah, Sunday Hamzah, Hanny Zurina Hook, Law Siong Kaliappan, Shivee Ranjanee This article analyses what determines remittance inflows into Malaysia. Using the Autoregressive distributed lag (ARDL) approach, the study used time-series data for the period 1987-2018. The study validated the theory that remittance inflows ought to be encouraged through determinants such as real wages, inflation, financial development, exchange rate among others. Variables like exchange rate, inflation, gross domestic product growth, financial development and real wages significantly determine the remittance received into Malaysia. Precisely, inflation and real wages significantly impacted and positively encouraged remittance inflows into Malaysia from abroad. On the other hand, remittance inflows reacted negatively to gross domestic products growth, exchange rate and financial development. Furthermore, the significance of the determinants differs. Precisely, real wages happen to be additionally responsive in comparison to inflation and the reason is that its elasticity is greater. In addition, both inflation and real wages have a great impact in Malaysia. This study recommends that the determinants of migrants' remittances in the country should be given attention which will strongly aid in employing remittances for the reduction of poverty, rising investment at the national level and therefore, aid in boosting growth and enhancing sustainable development to Malaysia. Iran University of Science and Technology 2024 Article PeerReviewed Elijah, Sunday and Hamzah, Hanny Zurina and Hook, Law Siong and Kaliappan, Shivee Ranjanee (2024) Determinants of migrants remittances in Malaysia: an ARDL approach. International Journal of Industrial Engineering and Production Research, 35 (1). pp. 1-11. ISSN 2008-4889; ESSN: 2345-363X https://ijiepr.iust.ac.ir/article-1-1908-en.html 10.22068/ijiepr.35.1.1908
institution UPM IR
collection UPM IR
description This article analyses what determines remittance inflows into Malaysia. Using the Autoregressive distributed lag (ARDL) approach, the study used time-series data for the period 1987-2018. The study validated the theory that remittance inflows ought to be encouraged through determinants such as real wages, inflation, financial development, exchange rate among others. Variables like exchange rate, inflation, gross domestic product growth, financial development and real wages significantly determine the remittance received into Malaysia. Precisely, inflation and real wages significantly impacted and positively encouraged remittance inflows into Malaysia from abroad. On the other hand, remittance inflows reacted negatively to gross domestic products growth, exchange rate and financial development. Furthermore, the significance of the determinants differs. Precisely, real wages happen to be additionally responsive in comparison to inflation and the reason is that its elasticity is greater. In addition, both inflation and real wages have a great impact in Malaysia. This study recommends that the determinants of migrants' remittances in the country should be given attention which will strongly aid in employing remittances for the reduction of poverty, rising investment at the national level and therefore, aid in boosting growth and enhancing sustainable development to Malaysia.
format Article
author Elijah, Sunday
Hamzah, Hanny Zurina
Hook, Law Siong
Kaliappan, Shivee Ranjanee
spellingShingle Elijah, Sunday
Hamzah, Hanny Zurina
Hook, Law Siong
Kaliappan, Shivee Ranjanee
Determinants of migrants remittances in Malaysia: an ARDL approach
author_facet Elijah, Sunday
Hamzah, Hanny Zurina
Hook, Law Siong
Kaliappan, Shivee Ranjanee
author_sort Elijah, Sunday
title Determinants of migrants remittances in Malaysia: an ARDL approach
title_short Determinants of migrants remittances in Malaysia: an ARDL approach
title_full Determinants of migrants remittances in Malaysia: an ARDL approach
title_fullStr Determinants of migrants remittances in Malaysia: an ARDL approach
title_full_unstemmed Determinants of migrants remittances in Malaysia: an ARDL approach
title_sort determinants of migrants remittances in malaysia: an ardl approach
publisher Iran University of Science and Technology
publishDate 2024
_version_ 1819301660809232384
score 13.4562235

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