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Do Migrant Remittances Promote Corruption in Pakistan?

Author

Listed:
  • Anam Alamdar

    (Department of Economics, Virtual University of Pakistan)

  • Munazza Ahmed

    (Department of Economics, Virtual University of Pakistan)

  • Atif Khan Jadoon

    (Department of Economics, University of the Punjab, Pakistan)

Abstract

Remittances play a very important role in a political economy perspective that how do remittances impact corruption in the recipient economy? This paper explored the hypothesis that whether the remittances worked as a cure by decreasing corruption being a political resource (accountability perspective), or remittances worked as a curse by allowing the government to divert spending from public goods provision (substitution perspective). The autoregressive distributed lag (ARDL) method is used to check whether a long-run equilibrium exists among selected indicators from 1984 to 2018. The Error Correction Model was used to get the short-run regression results. Empirical analyses have shown the support for remittances being a curse, not a cure for Pakistan in the long run whereas, short-run results revealed reversed resource curse hypothesis.

Suggested Citation

  • Anam Alamdar & Munazza Ahmed & Atif Khan Jadoon, 2022. "Do Migrant Remittances Promote Corruption in Pakistan?," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(1), pages 88-97, March.
    • Handle: RePEc:ani:irdjoe:v:4:y:2022:i:1:p:88-97
    DOI: 10.52131/joe.2022.0401.0063
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