Factors Of Manpower Export In Saudi Arabia And Its Contribution To The Economy Of Bangladesh: An Empirical Analysis

Abstract

The labor market is always found very complex due to multiple influential factors. Saudi Arabia and Bangladesh are closely involved in the labor market since 1976. This paper has attempted to figure out the impact of manpower export in Bangladesh to Saudi Arab respect to the change of crude oil price, gross domestic product and total labor force, etc. Secondary data was employed in this research. Descriptive statistics, factor analysis, Granger’s causality, Johansen’s test, vector auto-regression model, and econometric model were applied to measure the extent of the impact of the variables. Factor analysis indicates that gross domestic product per capita is the most potential variable for manpower export. Granger’s causality reveals that there is a unidirectional relationship between variables. Johansen’s test demonstrates the long-run association between employment, crude oil price, gross domestic product per capita, and total labor force.  The vector auto-regression model discloses that total labor impacts employment in the long run. The econometric model explores that the total labor force influences manpower export in a major and favorable way. Scholars, the government, policymakers, and development organizations will be able to make more informed decisions on the country's economic performance with the help of these insights.