The Role of Remittances and Other Variables for Economic Growth: Evidence from Pakistan

Abstract

This study investigates the impact of remittances, along with other key variables such as gross domestic product (GDP), foreign direct investment (FDI), exports, and inflation, on economic growth in Pakistan. By analysing these factors, the research aims to determine the significance of remittances and other variables in driving economic growth in the country. Using a quantitative research design, primary data were collected through a structured questionnaire distributed to 135 economists, financial analysts, banking professionals, policymakers, and academic experts. The data were analysed using multiple regression analysis, correlation analysis, and descriptive statistics. The empirical findings reveal that exports have the strongest positive impact on economic growth, followed by remittances and FDI, whilst inflation exerts a significant negative effect. The regression model demonstrates strong explanatory power, with an R-squared value of 0.712, indicating that the selected macroeconomic variables collectively explain a substantial proportion of the variation in economic growth. These findings provide important policy implications for promoting sustainable economic development in Pakistan.

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