Abstract:
Purpose: This research study is performed with an objective to determine the role of foreign
remittance, its conceptual linkage to macroeconomic indicators i.e. aggregate savings, GDP
and Inflation. Furthermore, this aims to investigate marginal impact of foreign remittance on
aggregate savings, GDP and Inflation.
Research Methodology: In this research study longitudinal research approach has been
followed. The current research work is secondary in nature. This study is primarily
quantitative in nature. The data range selected for current study is consisted of 16 years in time
period with four different variables. In this research study internet resource is used for data
collection purpose. In this research study linear regression analysis has used as regression
technique to determine the impact of foreign remittances on selected independent variables.
Findings of the Research: The findings of current research study revealed that there is
positive impact of foreign remittances on aggregate savings, inflation and GDP but the impact
on GDP is more significant followed with aggregate savings and CPI.
Practical Implications: This research study provided useful information to explore role of
foreign remittances on macroeconomic indicators and helps to improve the positive impact on
developing saving’s habit to grow aggregate savings and results in growth in GDP with lesser
impact on Inflation.
