The Contribution of Worker’s Remittances to Economic Growth in Pakistan

Zafar Iqbal and Abdus Sattar
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Zafar Iqbal: Pakistan Institute of Development Economics
Abdus Sattar: Pakistan Institute of Development Economics

No 2005:187, PIDE Research Report from Pakistan Institute of Development Economics

Abstract: The role of workers’ remittances in economic development of recipient countries is considered to be an important area of research. In particular, sound research in this area is important for policy-makers in order to formulate wise policies to channel these flows into productive investment. Remittances have become an important source of foreign exchange earnings, predominantly from developed countries to developing countries. The availability of foreign exchange through remittances has not only helped the recipient countries in achieving a reasonably high economic growth by reducing the current account deficit, it has also reduced their external borrowing as well as external debt burden. There is, however, also an alternative view that remittances may have a negative impact on output in recipient economies.

Pages: 29
Date: 2005
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