Analysis of WDI data to investigate the impact of foreign remittances on the economic growth of Pakistan
1 School of Business, Gujranwala Institute of Future Technology, Gujranwala, Pakistan.
2 Department of Computer Science and Engineering, University of Hafr Al Batin, Saudi Arabia.
3 Department of Computer Science and Information Technology, University of Lahore, Gujarat, Pakistan.
4 Department of Mathematics, University of Hafr Al Batin, Hafr Al Batin, Saudi Arabia.
Research Article
World Journal of Advanced Research and Reviews, 2023, 19(03), 589–594
Article DOI: 10.30574/wjarr.2023.19.3.1853
Publication history:
Received on 03 August 2023; revised on 11 September 2023; accepted on 13 September 2023
Abstract:
Remittances are one of the largest sources of financial inflow for developing countries and it imparts a considerable importance to economic growth. The purpose of our study is to analyse the impact of foreign workers’ remittances on GDP and in succession on economic growth. We processed annual time series data over the period 1980-2019. ADF unit root test was used to check the stationarity of variables. To check the short run and long run relationship between foreign workers’ remittances and GDP of Pakistan, ARDL (bounds) test was applied. As a result of our analysis, we found a significant positive relationship between remittances and economic growth of Pakistan. Our results provide thoughtful guidelines to policy makers who can use these insights to decide relevant and favourable policies and legislations.
Keywords:
GDP: Remittances: Export: Gross Fixed Capital: World Bank Data
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