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A Way towards Economic Growth in Pakistan: Role of Worker’s Remittances Revisited

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  • Hina Ali
  • Saba Tahir

    (The Women University Multan, Pakistan.)

Abstract

This research is directed to study the role of remittances in the economic growth of Pakistan. In Pakistan workers, remittances are considered a second-largest source of finance after FDI. In this study, the relationship between worker's remittances and economic development in Pakistan is estimated by using the Ordinary Least Square (OLS) technique. Data is taken in time series for the period of 37 years from 1976 to 2013 from World Bank, economic surveys, and Stat bank of Pakistan. This research showed that worker’s remittances are positive as well as significant with GDP growth and also playing a dynamic part in the economy of Pakistan. Savings (SAV) and Foreign direct investment (FDI) have positive and significant impacts on economic development. Therefore, the study recommends that there should be a proper setup that will help to attract more workers remittances into the economy. There is a need for such an official financial sector that inspires recipients to invest their savings into a productive sector that would result in economic growth.

Suggested Citation

  • Hina Ali & Saba Tahir, 2017. "A Way towards Economic Growth in Pakistan: Role of Worker’s Remittances Revisited," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 5(1), pages :1-14, June.
    • Handle: RePEc:ani:ipjhss:v:5:y:2017:i:1:p:1-14
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    References listed on IDEAS

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    1. Ahmed, Vaqar & Sugiyarto, Guntur & Jha, Shikha, 2010. "Remittances and Household Welfare: A Case Study of Pakistan," ADB Economics Working Paper Series 194, Asian Development Bank.
    2. Kuckulenz, Anja & Buch, Claudia M., 2004. "Worker Remittances and Capital Flows to Developing Countries," ZEW Discussion Papers 04-31, ZEW - Leibniz Centre for European Economic Research.
    3. Rashid Hussain & Ghulam Abbas Anjum, 2014. "Worker's Remittances and GDP Growth in Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 4(2), pages 376-381.
    4. Zafar Iqbal & Abdus Sattar, 2005. "The Contribution of Workers’Remittances to Economic Growth in Pakistan," PIDE-Working Papers 2005:187, Pakistan Institute of Development Economics.
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