Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329436 
Year of Publication: 
2025
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 13 [Issue:] 6 [Article No.:] 156 [Year:] 2025 [Pages:] 1-15
Publisher: 
MDPI, Basel
Abstract: 
Pakistan is one of the largest recipients of remittances globally and has substantial remittance inflow fluctuations; thus, finding the remittance-gross domestic product (GDP) ratio threshold is expedient. This study examined the macroeconomic impacts of emigrant remittances in Pakistan using a vector autoregressive estimation framework and investigated the threshold of the remittance-GDP ratio that has real effects on the economy in terms of Dutch Disease and capital accumulation. The empirical results showed that, regarding the Dutch Disease effect, a remittance-GDP ratio greater than 6% leads to a decrease in the manufacturing-services ratio, whereas as for the capital accumulation effect, a remittance-GDP ratio greater than 5% leads to a decrease in the investment-consumption ratio. These outcomes suggested that emigrants' remittance inflows in Pakistan that exceed certain levels relative to the GDP aggravate industrialisation (Dutch Disease effect) and capital accumulation.
Subjects: 
Pakistan
emigrant's remittances
Dutch Disease
capital accumulation
vector auto-regressive estimation
remittance-GDP ratio
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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