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Economic Growth and Inflow of Remittances: Do They Combat Poverty in an Emerging Economy?

Author

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  • Saqlain Latif Satti

    () (King Saud University)

  • Muhammad Shahid Hassan

    () (University of Management and Technology)

  • Fozia Hayat

    (University of Management and Technology)

  • Sudharshan Reddy Paramati

    () (Griffith University)

Abstract

Abstract Poverty is such a social problem which itself begets so many socio-economic evils in a country. It never lets the government of a country to sit easy and focus on some other issues. Almost all countries who are running through this lurch; at there, governments, policy advisors and researchers are always busy in formulating strategies to combat poverty. Therefore; feeling the significance of the topic, this study is designed to empirically test the impact of economic growth, workers remittances, rural population and literacy rate on poverty in Pakistan. The empirical findings of the study reveal that economic growth; workers' remittances and rural population significantly deteriorate poverty. Moreover; it has found that there exists bidirectional causality between economic growth and poverty and between workers’ remittances and poverty in Pakistan.

Suggested Citation

  • Saqlain Latif Satti & Muhammad Shahid Hassan & Fozia Hayat & Sudharshan Reddy Paramati, 2016. "Economic Growth and Inflow of Remittances: Do They Combat Poverty in an Emerging Economy?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1119-1134, July.
  • Handle: RePEc:spr:soinre:v:127:y:2016:i:3:d:10.1007_s11205-015-1003-9
    DOI: 10.1007/s11205-015-1003-9
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    Keywords

    Pakistan; Poverty; Economic growth; Remittances;

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