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The Economic Implications of Remittances on Economic Growth: The Case Study of Pakistan

Author

Listed:
  • Syed Zeeshan Zafar
  • Muhammad Siddique
  • Haroon Ahmad
  • Tahir Ahmad Khan

Abstract

The objective of this research is to study the wallop of remittances on GDP in Pakistan. Overall domestic product is versatile dependent. Remittances, foreign aid and investments are independent variables. A data of Pakistan is collected of 30 years (1985-2014) from WORLD DVELOPMENT IDICATORS. The model equation used in this data collection is based on Ordinary Least Square (OLS) method. Analysis shows that foreigners play important role in enhancing economy of Pakistan. There is positive relation between remittances and economy growth in Pakistan. If remittances are increased by 1% then 6.68% growth economy will increase. R square is equal to .9798, which means that 97% variation in dependent variable is due to independent variables.

Suggested Citation

  • Syed Zeeshan Zafar & Muhammad Siddique & Haroon Ahmad & Tahir Ahmad Khan, 2016. "The Economic Implications of Remittances on Economic Growth: The Case Study of Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(7), pages 215-222, July.
    • Handle: RePEc:hur:ijarbs:v:6:y:2016:i:7:p:215-222
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    References listed on IDEAS

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    3. S. Nyasha & N.M. Odhiambo, 2021. "The Impact of Remittances on Economic Growth: Empirical Evidence from South Africa," Working Papers AESRI-2021-21, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    4. Shaikh Muhammad Saleem, 2017. "Does International Financial Integration Spur Economic Growth? Evidence from Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 4(1), pages 116-130, March.

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