Nexus Between Remittances, Corruption And Poverty: A Case Of Pakistan


Volume 17 Issue 2 2021


Dr. Hira Mujahid (Corresponding Author)
Federal Urdu University, Karachi

Afaq Ali Khan
Mohammad Ali Jinnah University

Abdul Ghaffar
Mohammad Ali Jinnah University

Abstract The study's primary objective is to explore the impact of remittances, corruption, and governance on the poverty of Pakistan. For this purpose, the study uses data period 1996-2019. The study applies the Autoregressive Distributed Lag (ARDL) approach for estimation. The error correction model (ECM) can be derived using a simple linear transformation that integrates short-term adjustments with long-run equilibrium without falling long-run association. The results indicate that personal remittances, governance, and control of corruption have a significantly negative effect on poverty. The sign of a negative error correction term indicates that considered variables in the model have a long-run and stable relationship. The results proposed that personal remittances, good governance, and corruption affect poverty. Therefore, the study recommends the policymakers encourage overseas Pakistanis to send their earnings to Pakistan through legal transfer. The government should strengthen the institutions to increase their effectiveness and control of corruption.
Keywords Remittances, Economic Development, Poverty, Corruption
Year 2021
Volume 17
Issue 2
Type Research paper, manuscript, article
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2414-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Reviews Type Blind Peer Reviewed
Format PDF
Paper Link