Economic Growth and Inflow of Remittances: Do They Combat Poverty in an Emerging Economy?

Abstract

Poverty is such a social problem which itself begets so many socio-economic evils in a country. It never lets the government of a country to sit easy and focus on some other issues. Almost all countries who are running through this lurch; at there, governments, policy advisors and researchers are always busy in formulating strategies to combat poverty. Therefore; feeling the significance of the topic, this study is designed to empirically test the impact of economic growth, workers remittances, rural population and literacy rate on poverty in Pakistan. The empirical findings of the study reveal that economic growth; workers' remittances and rural population significantly deteriorate poverty. Moreover; it has found that there exists bidirectional causality between economic growth and poverty and between workers’ remittances and poverty in Pakistan.