Page | 104
IBT Journal of Business Studies (IBT-JBS)
E-ISSN: 2409-6520; P-ISSN: 2414-8393
NEXUS BETWEEN REMITTANCES, CORRUPTION AND
POVERTY: A CASE OF PAKISTAN
______________________________________________
Dr. Hira Mujahid
1*
| Afaq Ali Khan
2
| Abdul Ghaffar
3
Abstract
The study's primary objective is to explore the impact of remittances, corruption, and governance
on the poverty of Pakistan. For this purpose, the study uses data period 1996-2019. The
study applies the Autoregressive Distributed Lag (ARDL) approach for estimation. The error
correction model (ECM) can be derived using a simple linear transformation that integrates
short-term adjustments with long-run equilibrium without falling long-run association. The
results indicate that personal remittances, governance, and control of corruption have a
significantly negative effect on poverty. The sign of a negative error correction term indicates
that considered variables in the model have a long-run and stable relationship. The results
proposed that personal remittances, good governance, and corruption affect poverty.
Therefore, the study recommends the policymakers encourage overseas Pakistanis to send their
earnings to Pakistan through legal transfer. The government should strengthen the institutions
to increase their effectiveness and control of corruption.
Keywords: Remittances, Economic Development, Poverty, Corruption
Author’s Affliation:
Institution: Institute of Business Management, Karachi
1
| Mohammad Ali Jinnah University
2-3
The material presented by the author(s) does not necessarily portray the view point of the editors
and the management of the ILMA University, Pakistan.
(Online) 2409-6520 (Print) 2414-8393 ©2020, published by the ILMA University, Pakistan.
This is open access article under the license. https://creativecommons.org/licenses/by/4.0/
Country: Pakistan
Corresponding Author’s Email: *hira.mujahid@iobm.edu.pk
Volume 17.2, 104-115 (2021)