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Do Foreign Remittances Lead To Inclusive Growth In Pakistan?

Author

Listed:
  • AHMED RAZA CHEEMA

    (Assistant Professor, Department of Economics, University of Sargodha, Sargodha, Pakistan)

  • AQLEEMA NOOR

    (MPhil Scholar, Department of Economics, University of Sargodha, Sargodha, Pakistan)

  • JABBAR UL-HAQ

    (Assistant Professor, Department of Economics, University of Sargodha, Sargodha, Pakistan)

Abstract

Foreign remittances are increasing over time and becoming the main source of earning Foreign Exchange reserves, especially for the developing countries like Pakistan. So, this study explores the impact of Foreign Remittances (FR) on inclusive growth using the pooled data estimated from micro-level data over the period 1998/99–to 2018/19 in Pakistan. For this purpose, the study employs panel data techniques. The results reveal that foreign remittances have statistically significant positive effects on inclusive growth. These results are robust to the inclusion of per capita income, household size, and dependency ratio. There is also a statistically significant positive association between inclusive growth and per capita income. Further, the regional level analysis reveals that these findings are valid in the regions of urban and rural. The policy recommendation is that Government should formulate policies that maximize the inflow of foreign remittance and economic growth.

Suggested Citation

  • Ahmed Raza Cheema & Aqleema Noor & Jabbar Ul-Haq, 2021. "Do Foreign Remittances Lead To Inclusive Growth In Pakistan?," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 198-203.
    • Handle: RePEc:rfh:bbejor:v:10:y:2021:i:2:p:198-203
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    1. Ahmed Raza Cheema & Aqleema Noor & Jabbar Ul-Haq, 2021. "Do Foreign Remittances Lead To Inclusive Growth In Pakistan?," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(2), pages 198-203.

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