Do Migrant Remittances Promote Corruption in Pakistan?

Authors

  • Anam Alamdar Virtual University of Pakistan
  • Munazza Ahmed Virtual University of Pakistan
  • Atif Khan Jadoon University of the Punjab, Pakistan

DOI:

https://doi.org/10.52131/joe.2022.0401.0063

Keywords:

Corruption, Government Expenditure, Law and Order, Political Stability Index, Remittances, ARDL

Abstract

Remittances play a very important role in a political economy perspective that how do remittances impact corruption in the recipient economy? This paper explored the hypothesis that whether the remittances worked as a cure by decreasing corruption being a political resource (accountability perspective), or remittances worked as a curse by allowing the government to divert spending from public goods provision (substitution perspective). The autoregressive distributed lag (ARDL) method is used to check whether a long-run equilibrium exists among selected indicators from 1984 to 2018. The Error Correction Model was used to get the short-run regression results. Empirical analyses have shown the support for remittances being a curse, not a cure for Pakistan in the long run whereas, short-run results revealed reversed resource curse hypothesis.

Author Biographies

Anam Alamdar, Virtual University of Pakistan

Department of Economics

Munazza Ahmed, Virtual University of Pakistan

Department of Economics

Atif Khan Jadoon, University of the Punjab, Pakistan

Department of Economics

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Published

2022-03-22

How to Cite

Alamdar, A., Ahmed, M., & Jadoon, A. K. (2022). Do Migrant Remittances Promote Corruption in Pakistan?. IRASD Journal of Economics, 4(1), 88–97. https://doi.org/10.52131/joe.2022.0401.0063

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