Do Migrant Remittances Promote Corruption in Pakistan?

Anam Alamdar (), Munazza Ahmed () and Atif Khan Jadoon ()
Additional contact information
Anam Alamdar: Department of Economics, Virtual University of Pakistan
Munazza Ahmed: Department of Economics, Virtual University of Pakistan
Atif Khan Jadoon: Department of Economics, University of the Punjab, Pakistan

iRASD Journal of Economics, 2022, vol. 4, issue 1, 88-97

Abstract: Remittances play a very important role in a political economy perspective that how do remittances impact corruption in the recipient economy? This paper explored the hypothesis that whether the remittances worked as a cure by decreasing corruption being a political resource (accountability perspective), or remittances worked as a curse by allowing the government to divert spending from public goods provision (substitution perspective). The autoregressive distributed lag (ARDL) method is used to check whether a long-run equilibrium exists among selected indicators from 1984 to 2018. The Error Correction Model was used to get the short-run regression results. Empirical analyses have shown the support for remittances being a curse, not a cure for Pakistan in the long run whereas, short-run results revealed reversed resource curse hypothesis.

Keywords: Corruption; Government Expenditure; Law and Order; Political Stability Index; Remittances; ARDL (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.internationalrasd.org/index.php/joe/article/view/599/381 (application/pdf)
https://journals.internationalrasd.org/index.php/joe/article/view/599 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ani:irdjoe:v:4:y:2022:i:1:p:88-97

DOI: 10.52131/joe.2022.0401.0063

Access Statistics for this article

More articles in iRASD Journal of Economics from International Research Alliance for Sustainable Development (iRASD)
Bibliographic data for series maintained by Dr. Muhammad Abrar ul Haq ().