Impact of Foreign Remittances on Economic Growth and Poverty Reduction

foundingRemittances typically refer to transfers of money by foreign workers to their home countries. Remittances ar not a new phenomenon in the world, being a general associated to migration which has always been a part of human history. Remittances be playing an eventful role in the economies of many developing and low income countries. Pakistan is a grasp abundant country hence, as neoclassical theory shows, if workers are ineffective to find jobs and/or wages to satisfy their needs, they will look elsewhere. Pakistans history provides us with a new trend of emigration close to each decade. Remittance is an important source of foreign exchange requital for Pakistan since 1970. During the past four decade Pakistan received significant amount of remittances, however, vacillation were in any case observed in the inflow of remittances. Inflow of remittances affects economic outgrowth positively by reducing current account deficit, improving the sense of equilibrium of pay ment position and reducing dependence on external acceptance (Iqbal and Sttar, 2005).Pakistan like other developing countries in the world is known for its spunky migration and workers remittance. It is argued that this high migration is the result of poor economic conditions of the country because the economy is liner so many problems like unemployment, illiteracy, poverty, inflation, and terrorism etc. The people of Pakistan are migrating to foreign countries in search of job and to change their living standards. It is also argued that due to the high level of unemployment individuals are going abroad to take a shit the employment and livelihood for their family and this unemployment is creating the problem of brain drain.The effect of remittances is not exclusively multidimensional but in ... ...A.(2012), Workers Remittances and Economic egression in South Asia,MPRA Paper 39001, University Library of Munich, Germany.Katsushi, S. I., Raghav, G.,Abdilahi, A., and Nidhi Kaick er,(2011),Remittances, Growth and scantiness radical Evidence from Asian Countries,Discussion Paper Series DP2011-30, Research show for Economics & Business Administration, Kobe University. Levine, R. (1997), Financial Development and Economic Growth Views and docket Journal of Economic Literature, 35(2), 68872.Qayyum,A., Javid,M., and Arif,U.(2008), Impact of Remittances on Economic Growth and Poverty Evidence from Pakistan,MPRA Paper 22941, University Library of Munich, Germany.Siddiqi,R., and Kemal,A. R.,(2006,Remittances, Trade Liberalisation, and Poverty in Pakistan The aim of Excluded Variables in Poverty Change Analysis,PIDE-Working Papers 20061.