Abstract:
Purpose:Actual purpose of this study was to define role of remittances as remittances
represent one of the major international flows of financial means.This study is
conducted to observe the impact of macroeconomic factors on remittances including
exchange rate, inflation & Gross Domestic Product (GDP), on a developing country
“Pakistan” during the period 1980-2016.
Methodology/sample: Research Design is a document or a manuscript, the study is
mainly an explanatory study and follows quantitative design. The study focuses on
effect of Macroeconomic factors on Worker’s remittance i.e. Gross Domestic
Product, Exchange rate and Inflation, keeping in mind that the research should cover
all the requisites and justifications from a sample size of time series data of
macroeconomic factors from 1980 till 2016.
Findings:The analysis and comparative results clearly suggested that all three factors
impact remittances in different ways and their counter effects on economy are judged.
There are significant relationship that shows a positive direct relationship in GDP &
Remittances, whereas in two other variables i.e. Exchange rate and Inflation have
negative relationship with remittances inflow in Pakistan Economy.
Practical ImpIications:The outcomes of the research might help the corporate
decision makers, government policy formulators and other related quarters to
understand the impact & significance of workers remittances and their respective
relationships with variables. The study might help related government institutions to
define and direct remittances inflows in much better and effective ways to extract
valuable outcomes.
