The Foreign Remittances, Long Term Sustainable Economic Growth Nexus in Pakistan: An Empirical Analysis Using Bound Testing Approach
Remittances are considered vital for the progress of any economy. These are the finances that are sent by the immigrants and assist the nations to achieve their basic needs and to boost the living standard. This research focuses on the effectiveness of foreign remittances regarding inflation and economic growth. The data used for this study are taken for the period 1972-2018 as yearly based. To check the stationary of the data Augmented Dickey-Fuller (ADF) test is used and the methodological framework includes the Autoregressive Distributed Lag (ARDL) model that concluded that the study concludes that foreign remittances have an optimistic and momentous relation with the economic growth of Pakistan. Thus, it should emerge that remittances are a superior tool to address transient poverty which occurs due to the shocks whether at the domestic or general level rather than a structural scarcity.
Copyright (c) 2020 Pakistan Journal of Economic Studies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with PJES agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.