REMITTANCE INFLOWS AND POVERTY IN PAKISTAN :By Using ARDL Model

Abstract

The study puposes to explore the association between the poverty and remittances in Pakistan. Data for the time series is gathered between 1980 and 2021. This research employed two substitutes for poverty. The poverty proxy for Model 1 is household consumption (HHC). In model 2, household consumption is regarded as poverty due to low income, while the infant mortality rate is regarded as poverty due to health issues. The unit root findings show that co-integration and (ARDL) regression analysis may be concluded by applying the ARDL bond testing. Models 1 and 2's variables show a long-run link according to the findings of the co-integration test since their respective F-statistics are greater than the crucial value. The results of model 1 (long- and short-term) show that remittances (REM) have a negative influence on poverty (HHC). According to earlier research, remittances have a detrimental impact on poverty. The results of model 2 (long-run) show that poverty (IMR) is negatively impacted by remittance. Short-term outcomes, however, show that remittance impact is positively correlated with poverty (IMR). The inverse link between remittances and poverty suggests that remittance growth can lower Pakistan's poverty rate. The findings indicated that remittance inflows have a significant impact on decreasing poverty in Pakistan.