THE IMPACT OF WORKER’S REMITTANCES, REAL EXCHANGE RATE, & POPULATION GROWTH ON GDP: EMPIRICAL FINDINGS FROM PAKISTAN

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.