The Impact of Remittances on Sustainable Development in Pakistan

Abstract

This paper looks at the impact of remittances on sustainable development in Pakistan. In this paper, Sustainable Development is looked at in the framework of the „SDGs‟ (Sustainable Development Goals) defined by the UNDP in 2015. The study utilizes time series data for Pakistan for the period 1976-2015. Augmented Dickey Fuller (ADF) test is used to check the stationarity of variables, all of which are stationary at first difference. As we have multiple variables in our model, the Johansen co-integration has been used to check the long run relationship between these variables. As we have three different dependent variables in our study, namely, infant mortality, primary school enrollment, and wheat consumption per capita, three different regressions have been run to identify the relationship of these three variables with remittances. Our results indicate that remittances increase enrollment in primary education but decrease infant mortality and per capita wheat consumption. All the long run relationships are stable.