Abstract:
Purpose
The objective of this research is to examine whether the effect of determinants such as
worker’s remittances, real exchange rate, and population growth. Those determinants shares
well in the economy of Pakistan. This paper also finds out the whether worker’s remittances,
genuine trade rate, and population growth has a positive or negative effect on GDP.
Methodology & Design
This research data was secondary and collected from the World Development Indicators
(WDI). However, there are some of the researches have been conducted on those variables
separately. Hence, to calculate the impact of my independent variable I collected the data
from 1976 - 2016. In this unit root analysis is to audit stationarity issues, and co-integration
is tested by bound test and regression method.
Findings
This research found the positive and important relationship of Worker’s Remittances, and
Population. These two variables kindly much supported the reserve of Pakistan. However,
Real Exchange Rate have shown negative relationship due to the multiple reasons that were
impossible to pin down. Real Exchange Rate is a unfavorably effecting the economic growth
of Pakistan in the long run.
