Remittances and their Impact on Poverty: An Empirical Study of Developing Countries Using ARDL

Abstract

The primary goal of this research is to investigate the link between remittances and poverty using a panel data set of developing countries from 1990 to 2020. Empirical findings of ARDL model suggests that an increase in remittances reduce poverty, which suggests that remittances can enhance the living standard of the poor. In developing countries the migration of labour is a good sign of poverty reduction. Financial development is significant and positively related to poverty reduction so there is a need of policies that promote ease for migrants and pro poor financial development is required. This work will contribute to examining dynamics between remittances and poverty using the data of selected developing countries.