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Remittances, Foreign Debt and Economic Growth: A Cross Country Analysis

Author

Listed:
  • Adeela Hussain

    (National College of Business Administration and Economics, Multan Campus, Pakistan)

  • Muhammad Irfan Chani

    (COMSATS Institute of Information Technology, Vaheri, Pakistan)

Abstract

Remittances are the part of migrant workers and essentially cash exchange who earned by abroad and send their families. Worker remittances are an important part of international capital flows. The volume of remittances increments in developing countries day by day and season via season. Remittances are the backbone for the developing countries. Foreign debt is also an important for economic growth, especially for developing countries. Developing countries can increase their economic growth by using foreign debt in an efficient way. We have used annual data from the period of 2014 cross section of about 217 countries, including Afghanistan, Pakistan, Turkey, Bangladesh, Iraq and China. Results show that there is a positive and significant effect of foreign debt and remittances on economic growth.

Suggested Citation

  • Adeela Hussain & Muhammad Irfan Chani, 2018. "Remittances, Foreign Debt and Economic Growth: A Cross Country Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(2), pages 59-71, June.
    • Handle: RePEc:rfh:bbejor:v:7:y:2018:i:2:p:59-71
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    remittances; foreign debt; economic growth;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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