Article | Open Access | Published: 7 December 2015
Impact of Remittances on Export Performance: Time Series Evidence from Pakistan
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Abstract:
This study analyzes the relationship between Remittance and Exports by using 32 years of time-series data from the period 1981 to 2012. This study includes Regression analysis OLS, Granger causality test, Eigenvalue test, stability analysis, Augmented Dicky Fuller tests, Error correction model, cointegration, and sensitivity analysis. The results show the negative effect of remittance on exports in the long run in Pakistan which is completely against previous studies to date. The Government of Pakistan should lower the barriers to remittance flows and reduce the transaction cost for migrants who send money home and make the export market more competitive to have a significant positive impact of remittances on export.
Keywords:
Export, Remittances , Real Gross Domestic Product
Publisher:
ILMA UNIVERSITY
Published:
7 December 2015
Issue:
Issue 2 : Volume 11
E-ISSN:
2409-6520
P-ISSN:
2414-8393
This is an open access article distributed under the terms of the Creative Commons Attribution CC BY 4.0 license, which permits any use, distribution, and reproduction of the work without further permission provided the original author(s) and source are credited.