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The Economics and Finance Letters

December 2020, Volume 7, 2, pp 268-275

Exploring the Linkages between Remittances, Economic Growth and Poverty: Empirical Evidence from Pakistan

Shiza Bashir

Shiza Bashir 1

  1. BS Scholar at COMSATS University Islamabad Pakistan. 1

on Google Scholar
on PubMed

Pages: 268-275

DOI: 10.18488/journal.29.2020.72.268.275

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Article History:

Received: 11 August, 2020
Revised: 14 September, 2020
Accepted: 25 September, 2020
Published: 09 October, 2020


This research mainly focuses on the impacts and implications of foreign remittances and how they affect the growth and poverty reduction in an economy. It further highlights the importance that remittances have on the improvement of the living conditions and standards in Pakistani. In order to achieve this target, we retrieved time-series data from the WDI, from the year 1980 till 2017. The econometric technique ARDL is applied which shows that there is a favorable relation among the variables. Our empirical findings suggest that the recipient country shows a positive trend in economic growth as an aftermath of increased remittances. Moreover, it proves that remittances have a notable influence on the reduction of poverty and boosting living standards in Pakistan economy. This ultimately leads to improving the socio-economic condition of the country in question. Results and findings, if used efficiently, have great potential policy implications for policymakers in the field of remittances.
Contribution/ Originality
The fundamental objective of our research is to find the impact of remittances on poverty, growth, and development. The positive trends and inflows of remittances help improve the economic conditions of the country by lessening poverty and increasing positive growth levels.


Remittances, Poverty, GDP, Pakistan, ARDL.


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This study received no specific financial support.

Competing Interests:

The author declares that there are no conflicts of interests regarding the publication of this paper.


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