Foreign Remittances India Article

iaWorld Applied Sciences Diary 19 (3): 366-369, 2012 ISSN 1818-4952; © IDOSI Publications, 2012 DOI: 15. 5829/idosi. wasj. 2012. nineteen. 03. 1387

The Position of International Remmitances and Economic Development in Poverty Alleviation: Period Series Facts from Pakistan Muhammad Shafiq, Ihtisham Ul Haq, Alam Khan and Shaista Khan Department of Economics, KUST, Pakistan Fuzy: This study examined the effect of international remittances and economic progress on low income in Pakistan. Annual time series data was analyzed for the timeframe 1978 to 2010. Augmented Dickey-Fuller and Philips-Perron confirmed the problem of non-stationarity in level. This challenge was removed by taking initial difference of most variables. Johansen-juselius co-integration test out was requested co-integration. The end result indicated a single co-integration vector among factors. VECM was applied to record long and short run human relationships. Results affirmed that there is unfavorable impact of foreign remittances and monetary growth upon poverty relief in long manage. Short run romantic relationship was not affirmed among variables by VECM. The ECT value revealed that model was in equilibrium and adjusts on its own to exterior shock when ever poverty was taken as dependant variable. It is strongly recommended that authorities should take procedure for encourage employees to send their money through appropriate channel and so its efficient utilization can be helpful in low income alleviation. Jel Classification code: E01, F24, I32. Keywords and phrases: Economic Growth Remittances Poverty Co-integration VECM

INTRODUCTION The remittances delivered by migrant workers residing across the world to their individual developing countries turns out to be a more reliable and stable supply of foreign exchange income as out-do other sources like FDI and trade. A total of $US 300 billion dollars were sent as remittances by believed migrants in 2006, providing $US 30 billion more than the total aid and foreign investment to producing countries i actually. e. $US 270 billion dollars. According to the research remittances will be more reliable and stable options in producing finance with the respective countries [1]. For the last many years a significant embrace international remittances had been seen in developing countries. In most of developing countries remittances comprise the largest way to obtain foreign exchange earnings, even going above export income, FDI, help, or various other private capital flows [2]. Pakistan is also within the list of world's poor countries. Poverty is among the foremost social problems in Pakistan. It really is one of the most essential sensitive concerns not only to get our do it yourself but for the whole world.

Government of Pakistan have taken some good initiatives to combat low income and lower income reduction is in forefront in the government' almost all economic initiatives [3]. " Financial growth is actually a term generally measured by amount of production in a country or region over the certain period of time. In addition to production, assessed through the gross domestic merchandise, or GROSS DOMESTIC PRODUCT, local governments and individuals may use another type of standard to measure economic growth”. In case the GDP of current year is greater than previous year this reveals an economic progress, but if the GROSS DOMESTIC PRODUCT of current year is less than previous year then the development is adverse or it is compression of economic system. Per household is one of the measures of financial growth. It really is used to gauge the financial condition of country, most frequently used for comparison of two economies. This is one of the reasons that it is generally measure in international foreign currencies. It is determined through a numerical formula. Since it is a measure of economic expansion so for economist increase in per household shows financial growth of the region [4]. Hypotheses from the Study: The key hypotheses with this research study will be as beneath:

Corresponding Author: Muhammad Shafiq, Department of Economics, KUST, Pakistan.


World Appl. Sci. M., 19 (3): 366-369, 2012

There is confident relationship among worker's remittances and...

References: 1 . Turnell, S., A. Vicary and W. Liverpool, 2010. Migrant Worker Remittances and Burma: An Economic Evaluation of Study Results. Sydney: Burma Monetary watch. Macquaric University. Jongwanich, J., 3 years ago. Workers' Remittances, Economic Progress and Low income in Producing Asia and the Pacific Countries. UNESCAP Operating Paper WP/07/01. Go, P., 2009. Authorities of Pakistan, Economic Study of Pakistan, 2008-09, Economical Advisor's wing, Ministry of Finance, Islamabad. Economic expansion (n. d). Economic growth is a term generally measured by the amount of creation. Retrieved Apr 9, 2012, from http://www. economy observe. com/world-country/country-per-capita-gdp salary. html


2 .

three or more.


Khan, S., Mirza, R. Sajid, M. Abbas and G. N. Ahmad, 2009. Influences of Remittances on Living Standards of Emigrants' Family members in Gujarat-Pakistan. European Diary of Cultural Sciences, 12(2): 205-216. six. Kalim, L. and M. Shahbaz, 2009. Remittances and Poverty Nexus: Evidence From Pakistan. Intercontinental Research Record of Fund and Economics, ISSN 1450-2887 Issue 30. 7. Kersi, 2009. Functioning paper, Ready for a global Citizenship Conference Supported by the Hewlett Base. 8. Dickey, D. A. and Watts. A. Larger, 1979. Allocation of the Quotes for AutoregressiveTime Serieswith one Root. Journal of the American Statistical Affiliation, 74: 427-31. 9. Phillips, P. C. B. and P. Nuance, 1988. Assessment for a Product Root on time Series Regresson. Econometrica, seventy five: 335-46. 15. Time series variables, (n. d). Period series parameters are co-integrated, which is a statistical property. Recovered March24, 2012 (http://www. uh. edu/~bsorense/coint. pdf).



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