Effect of Workers’ Remittances on Private Savings Behavior in Pakistan
Journal Title: Asian Economic and Financial Review - Year 2011, Vol 1, Issue 3
Abstract
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.
Authors and Affiliations
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: sarwar41ss@hotmail.com, Samina Shaheen| Ph. D Student, Department of Economics, University of Sargodha, Pakistan
Keywords
Related Articles
- EP ID EP1718
- DOI -
- Views 968
- Downloads 76
CORPORATE GOVERNANCE IN ZIMBABWE: AN OVERVIEW OF ITS CURRENT STATE
This article aims to provide an overview of the current state of corporate governance in Zimbabwe. Corporate governance has gained relevance and prominence in the global society since the big corporate scandals such as E...
CORRUPTION AND POLITICAL VIEW POINT OF THE GOVERNMENTS IN TRANSITION COUNTRIES EU MEMBERS
In achieving their goals in conducting measures of their economic policy, governments of transition countries EU members, should realize the importance of suppressing the phenomenon of corruption in economy, especially i...
TEST OF THE BANK LENDING CHANNEL FOR A BRICS COUNTRY
Based on a simultaneous-equation model of loan demand and loan supply and applying the three-stage least squares method, this paper finds that loan demand is negatively affected by the lending rate and positively associa...
ESTIMATING GROWTH IN INVESTMENT OF MICRO AND SMALL SCALE ENTERPRISES IN NIGERIA
This study analyzed the growth in investment of Micro and Small Scale Enterprises Intermediated by the informal credit market in Nigeria. Primary data for this study were collected from 10 (ten) Local Government Areas of...
SECURITY ISSUANCE AND STOCK PRICE EFFECTS WITH HETEROGENEOUS BELIEFS
We analyze the factors that affect security issuance and its impacts on the volatility of stock returns before and after the issuance under heterogeneous beliefs and short sale constraints using the issuing sample of con...