Do Remittance Inflows, Investment Attributes, and Regional Integration Accelerate Sustainable Economic Growth in Asia?

Muhammad Ahsan Ali Raza (), Chen Yan (), Hafiz Syed Mohsin Abbas () and Sara Ilahi ()
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Muhammad Ahsan Ali Raza: Beijing University of Post and Telecommunications
Chen Yan: Beijing University of Post and Telecommunications
Hafiz Syed Mohsin Abbas: Huazhong University of Science and Technology (Main Campus)
Sara Ilahi: Lahore College For Women University

Journal of the Knowledge Economy, 2024, vol. 15, issue 1, No 52, 1302-1317

Abstract: Abstract To lift the regional economic development and sustainability, foreign, domestic, and workers’ remittance investment play their role in the progression of the economic cycle. By setting the objective, the current study examines the role of foreign direct investment inflows (FDI), private capital investment (PCI), and workers’ remittance (RMTw) as independent variables and demographic pressure as a control variable on economic growth. Furthermore, considering Asia’s regional perspective of 43 developing and emerging economies, the role of globalization as a proxy for regional integration has also been analyzed. GDP per capita has been taken as a proxy of sustainable economic growth (SEG), and time has been taken from 2006 to 2019. By applying the two-step system generalized method of moments (SGMM), results say that investment attributes, FDI, and PCI support and accelerate the SEG in Asia by adding infrastructure development and trading activities. On the other hand, it states that RMTw negatively affects the SEG by putting economic pressure and reducing the workforce and idle money. Furthermore, regional integration aggressively supports the SEG in Asia, promoting Asia’s trade, social, and political activities. It concludes that Asian SEG is influenced by the foreign and domestic inflows and regional integration that actively promotes economic growth, which needs to be supported by the governments in relaxing the investment regulation. Furthermore, remittance should be channelized with financial institutions to show its active contribution to the economic cycle.

Keywords: Workers’ remittance (RMTw); Foreign direct investment (FDI); Private capital investment (PCI); GDP per capita; Sustainable economic growth (SEG) (search for similar items in EconPapers)
JEL-codes: F24 F3 F43 F6 Q01 R42 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01126-x

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