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Do Remittances, Exports and Financial Development Matter for Economic Growth? A Case Study of Pakistan using Bounds Approach
Journal of International Academic Research (2011)
  • Ronald R Kumar
Abstract
The study explores, using bounds test, the short-run and long-run effects of remittances, exports and financial development on per worker income using the annual data for the period 1980-2009 in Pakistan. The results show exports are significant both in the short-run and long-run while remittances is positively significant only in the long-run but has a lagged negative effect similar to financial development in the short-run. Contrary to some recent findings, the results show financial development does not have any significant long-run effect on per worker income. Therefore, the need to develop exports and remittances markets for long-term sustainability of the economy, and finding innovative ways to make financial sector more integrated to economic activities are suggested for development policy discourse.
Keywords
  • Remittances,
  • Exports,
  • Financial Development,
  • Economic Growth,
  • Bounds Test,
  • Pakistan
Publication Date
2011
Citation Information
Kumar, R.R. "Do Remittances, Exports and Financial Development Matter for Economic Growth? A Case Study of Pakistan using Bounds Approach" Journal of International Academic Research 11.1 (2011): 18-26.