International Labour Migration and Convergence in Human Development: A Study of SAARC Countries

Abstract

The present study examines convergence in human development index and real per capita income across SAARC countries in terms of both the methods of sigma (σ)-convergence and beta (β)- convergence during 1990-2017. The study also analyses patterns and trends in international labour migration of SAARC countries and it tries to assess the role of such labour mobility in human development. There is a clear indication of both unconditional and conditional convergence in human development across SAARC countries. There is a positive role of international labour migration in such convergence in human development. An analysis of panel data regression results reveals that the extent of emigrants from the member countries of SAARC to the developed countries and the trade openness significantly impact human development as well as economic development. Population pressure, income differentials, level of urbanisation and the degree of trade openness are the crucial determinants of emigrants of SAARC countries to the developed countries. India, Pakistan, and Bangladesh are the major contributors to international migrant stocks in the SAARC region. The refugees in the SAARC region are mainly concentrated in Pakistan. The remittance received per emigrant of the member countries of SAARC is found to be greater than the amount they have paid per immigrant. The policy of economic openness, urbanisation and the extent of labour mobility across countries are the very important factors for the improvement of human development as well as economic development.