Remittances, Democracy and Government Spending in Pakistan

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Observational analysis finds remittances positively influence government consumption in Pakistan, suggesting implications for fiscal policy.

Government consumption spending is positively influenced by remittances and real GDP per capita, while trade openness has a negative impact.
Evidence suggests a stable cointegrating relationship exists among government spending, remittances, and democracy over 43 years.
Analysis utilizes an autoregressive distributed lag (ARDL) model, revealing unidirectional causality from both remittances and GDP to government spending.
Investigates how remittances affect public finances through the tax revenue channel, underlining important fiscal dynamics.

Sami et al. (2025) studied this question.

View Full Paper

Ask AI

Bookmark

Observational analysis finds remittances positively influence government consumption in Pakistan, suggesting implications for fiscal policy.