Ali, Gilal Ashfaque (2025) The Impacts Of Remittances On External Debt, Foreign Reserves And Economic Growth In Pakistan. PhD thesis, Perpustakaan Hamzah Sendut.
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Abstract
Pakistan, a labor-abundant and capital-scarce country, has relied on external borrowings and grants since the 1970s to address growing external and internal deficits, low productivity, insufficient national savings, and rising investment demands. This dependency has led to a burdensome external debt, volatile foreign exchange reserves, and recurrent economic crises. While remittances have been presumed to mitigate the adverse effects of trade and fiscal deficits, as well as the costs of external debt servicing, empirical evidence supporting this assumption is limited. This study aims to investigate the impact of remittances on external debt, foreign reserves, and economic growth through investment in pakistan, utilizing time series data from 1976 to 2022 analyzed through the auto regressive distributed lag (ardl) model, the results indicate a long-run co-integration among remittances, external debt, foreign exchange reserves, and gdp growth. Specifically, remittances positively and significantly correlate with external debt, foreign reserves, and economic growth, while gdp growth, trade volume, and foreign exchange reserves exhibit a negative relationship with external debt. Additionally, gross capital formation and external debt servicing have a significant positive association with external debt. Remittances in pakistan appear to act as collateral for foreign borrowings, and foreign reserves serve precautionary purposes. Furthermore, remittances, exports, gdp growth, and foreign direct investment are vital to bolstering foreign reserves, while imports and debt servicing exert substantial pressure on these reserves.
| Item Type: | Thesis (PhD) |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) > H1-99 Social sciences (General) |
| Divisions: | Pusat Pengajian Sains Kemasyarakatan (School of Social Sciences) > Thesis |
| Depositing User: | Mr Hasmizar Mansor |
| Date Deposited: | 20 May 2026 02:38 |
| Last Modified: | 20 May 2026 02:38 |
| URI: | http://eprints.usm.my/id/eprint/64250 |
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