• Journal title: Asian Economic and Financial Review
• ISSN: 2305-2147 (print) 2222-6737 (online)
• Publisher: Aess
• Country of publisher: pakistan
• Date added to EuroPub: 2017/May/11

• LCC Subject Category: Finance and Financial Services, Economics
• Publisher's keywords: ARDL Co-integration, Error Correction Model, Private Savings, Remittances
• Language of fulltext: english
• Full-text formats available: PDF
• Time From Submission to Publication: 8

Rahila Munir| Ph. D Student, Department of Economics, University of Sargodha, Pakistan, Maqbool H. Sial| Dean and Professor, Department of Economics, University of Sargodha, Pakistan, Ghulam Sarwar| Ph. D Student, Department of Economics, University of Sargodha, Pakistan E-mail: [email protected], Samina Shaheen| Ph. D Student, Department of Economics, University of Sargodha, Pakistan

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The study empirically examined the macroeconomic impact of remittances onprivate savings in Pakistan by applying the ARDL Bounds Testing Approach of cointegration by using annual time series data for 1973-2007.It also analyzes theeffectiveness of remittances and foreign direct investment in promoting savings.The results reveal that worker remittances positively affect the private savings inPakistan in the long run and in the short run. So remittances are not only spent onbasic consumption needs, but are also either saved or invested. But the effect offoreign direct investment on private savings is negative because it is not directlyreached the poor households.