ASSESSING THE IMPACT OF MIGRANT WORKER’S REMITTANCES ON GDP GROWTH: AN EMPIRICAL STUDY ON THE ECONOMY OF PAKISTAN

Abstract

In this study, we investigate the impact of migrant worker’s remittances to Pakistan's GDP growth. A time series data from 1994 to 2024 has been used for the empirical analysis. The results of the ADF unit root test indicate that emigration and inflation are stationary at levels, whereas worker remittances, unemployment rate, and total reserves are stationary at first differences. Hence, we employ the ARDL technique to estimate the data. The ARDL results show both long-term and short-term relationships. The findings demonstrate that migrant worker’s remittances influence Pakistan’s GDP positively and significantly. However, the negative growth impact of inflation and unemployment has been prevalent.