Labor Mobility across Borders and Macroeconomic Outcomes: Dynamic Evidence from Pakistan

Purpose: This study investigates the relationship between international labor mobility and Pakistan’s macroeconomic performance by examining the influence of push and pull factors, along with the mediating roles of remittances and globalization. Design/Methodology/Approach: Macroeconomic performance is decomposed into five push and five pull constructs, while international migration is classified into seven categories. Annual time-series data for 1976–2025 are analyzed using unit root tests, regression bootstrapping, and consistent Partial Least Squares Structural Equation Modeling (PLS-SEM). Reliability, convergent validity, discriminate validity, and other diagnostic tests are also employed. Findings: The results reveal a complex long-run relationship, indicating that disaggregated analysis provides deeper insights than aggregate analysis. All push and pull constructs significantly influence international migration across different skill categories, although their effects vary in magnitude. Among the constructs, the current account balance (CAB) and gross fixed capital formation (GFCF) exhibit insignificant effects. Furthermore, remittances and globalization significantly mediate the relationship between international migration and macroeconomic performance. Implications/Originality/Value: The study offers a comprehensive framework linking migration dynamics with macroeconomic performance, highlighting the importance of disaggregated policy analysis and the mediating roles of remittances and globalization in shaping migration outcomes