EXPLORING THE IMPACT OF REMITTANCES ON ECONOMIC GROWTH IN PAKISTAN

Abstract

Remittances play a vital role in the economic development of a country like other variables. This paper examines how these remittances are affecting the economic growth of Pakistan measured in terms of real GDP growth. The time-series data from 1975 to 2019 have been taken. To study the long-run relationship the Johansson cointegration technique has been applied. The mandatory test for the above technique Augmented Dickey-Fuller test has also been applied to check the non-stationary variables. It has been examined that remittances have positively affected the long-run economic growth in the case of Pakistan.