Remittances and Economic Growth: Exploring the Role of Financial Development


  • Zakia Batool NUML, Islamabad
  • Muhammad Haroon NUML, Islamabad
  • Sajjad Ali Quaid - e - Azam University, Islamabad
  • Rashid Ahmad BZU Multan, Pakistan



Economic growth, Remittances, Financial Development


Over the last several decades, the amount of international migration has increased dramatically, resulting in enormous cash flows to labour-exporting nations. The importance of remittances in sustaining families in poor nations has been well acknowledged by many researchers but at the same time a well-functioning banking system has been deemed important to increase migrant transfers by lowering prices and improving service availability. Therefore, this study attempts to analyse the role of financial sector development in enhancing the effect of remittances in spurring economic growth. This study uses time series data for the period of 198-2020 to delve into the nexus. Using ARDL approach, this study finds the complementary role of remittances and financial sector in both long run and short run.   

Author Biographies

Zakia Batool, NUML, Islamabad

Assistant Professor, Department of Economics

Muhammad Haroon, NUML, Islamabad

Lecturer, Department of Economics

Sajjad Ali, Quaid - e - Azam University, Islamabad

MPhil Scholar

Rashid Ahmad, BZU Multan, Pakistan

Assistant Professor, School of Economics


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How to Cite

Batool, Z. ., Haroon, M. ., Ali, S. ., & Ahmad, R. (2022). Remittances and Economic Growth: Exploring the Role of Financial Development . IRASD Journal of Management, 4(1), 127–134.