The Contribution of Middle East Countries, in Workers Remittances of Sri Lanka

M.Vinoj Faculty of Arts & Culture Economic Unit South Eastern University of Sri Lanka

N.San eethan Faculty of Arts & Culture Economic Unit SEUSL

Introduction
Foreign private remittances is the Major Sources of Foreign Exchange Earnings. 2010 -4116 Million S! 2011 -"14" Million S! #epartures for Foreign Emplo$ment is in creasing rapi%l$.

e!artures for Forei"n Em!lo#ment %&''( , (*&&+

300000 250000 200000 Axis Title 150000 100000 50000 150000 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 100000 50000 Departures for Forei ! "#p$o%#e!t 0 0 2 4 6 8 10 12 14 16 18 20 300000 250000 200000 f(x) = 7927.03x + 107052.93 R = 0.79

Labour Force & e!artures for Forei"n E

Departures for Forei ! "#p$o%#e!t &i!ear (Departures for Forei ! "#p$o%#e!t)

'our(e ) '&*F"

'our(e ) '&*F"

Conti-.
e!artures for Forei"n Em!lo#ment / Re"ional 0asis
%&''(1(*&&+

-.er 94+ of e#p$o%ees /or0i! a1roa2 /ere i! t3e 4i22$e "aster! (ou!tries.

e!artures for Forei"n Em!lo#ment %&''( , (*&&+ : Countr# 0asis

'our(e ) '&*F"

,ou!tries

2b3ecti4es of the stud#

&o i%entif$ the contri'ution of private remittances from Mi%%le East on the total private remittances of the countr$. &o fin% out the causes an% o'stacles of lo( income from Mi%%le East

Methodolo"#

ata Collection
5rimar# ata: )ntervie(s (ith emplo$e% persons in Mi%%le East an% Foreign *ecruitment agents. Secondar# ata : +nnual *eports of Sri ,an-a .ureau of Foreign Emplo$ment/ +nnual *eports of 0.S,/ +rticles from Maga1ines 2 3e'sites.

ata 6nal#sis
#ata have 'een anal$1e% in 4ualitative 2 4uantitative metho%s. &ime series %ata 51990-2010) is use% to fin% out the relationship 'et(een the t(o varia'les. #escriptive Statistical Metho%s/ *egression Metho%s/ &a'les an% 0harts have 'een use% to support this stu%$. +nal$1e% '$ using S6SS

Model 7sed to this Stud#

Simple ,inear *egression Mo%el &* 7 80 9 81 ME* 9

&* -&otal 6rivate *emittance ME* -Mi%%le East 6rivate *emittance -Error &erm

80/ 81 - 6arameters

Results and iscussion

&he follo(ing (ere calculate% from this mo%el:

6 ;<alue +%juste% *-S=uare% F-<alue &
&a'le 1.1 Linear Model

Model &* 7 80 9 81 ME* 9

5 ) 8alue 0.000000

F 9196.670

9R )s: %ad3+; 0.998046

&he a'ove mo%el is the 'est fit mo%el accor%ing to the values of +%juste% *-S=uare% an% F.

Conti

+nal$1e% Mo%el
t = 0 + 1 MERt
&a'le 1.2

Linear Model
5arameter C %Constant+ Estimate <* 768.6670 1.691180 T 0.452464 95.89927 5)4alue. 0.6567 0.000

Middle East 5ri4ate Remittance %MER+ <&

R)S: %ad3+ = ''>

Findin"s & Conclusion

*esults sho(s that there is positive an% high correlation 'et(een &otal *eturns >f 6rivate *emittances an% the &otal *eturns From Mi%%le East. Speciall$ it sho(s ??@ 50.??AB an% significant at p 7 C .001 level. &he Estimate value of &otal *eturns >f Mi%%le East 6rivate *emittances is in 1.6? units. +n% the pro'a'ilit$ 56-<alueB is at 0.000 level. )t means if the &otal *eturns >f Mi%%le East 6rivate *emittances increases in 1 unit/ thereDll 'e a positive increase of 1.6? nits in the &otal *eturns >f *emittances of the nation

Conti)t sho(s the positive relationship 'et(een &otal *eturns >f 6rivate *emittances an% the &otal *eturns From Mi%%le East. &he pro'a'ilit$ value of the varia'le is at 0.00 level. So statisticall$ the pro'lem is feasi'le (ith the given constrains. &his reflects that the E&otal Mi%%le East 6rivate *emittancesD is contri'uting to E&otal 6rivate *emittancesD of Sri ,an-a.

References
1B 2B

0entral .an- of Sri ,an-a/51??0-2011B/ F+nnual *eportsG/ 0entral .an- of Sri ,an-a Hana$a--ara/ +.I.3. 52004B/ FEmplo$ment an% nemplo$ment in Sri ,an-a ; &ren%s/ )ssues an% >ptionsG/ #epartment of 0ensus an% Statistics/ 0olom'o.

JB

6ri$an-a Ka$a(ar%ena F)mpacts of *emittances on the Lousehol% of the EmigrantM Sri ,an-aG/ )nstitute of 6olic$ Stu%ies Sri ,an-a.

4B

Sri ,an-a .ureau of Foreign Emplo$ment/ 5200-2010B/ F+nnual Statistical *eports of Foreign Emplo$mentG/ Sri ,an-a .ureau of Foreign Emplo$ment *esearch #ivision

"B

&ransparenc$ )nternational Sri ,an-a 52010B F)ntegrit$ in Foreign Emplo$ment ; +n anal$sis of corruption ris-s in recruitmentG Sri ,an-a.

Thank You