UNVEILING THE CATALYSTS OF ECONOMIC DEVELOPMENTS: EXPLORING DYNAMIC LINK BETWEEN FOREIGN REMITTANCES AND KEY INDICATORS IN SOUTH ASIA

The purpose of the study was to investigate the relationship between foreign remittances and economic development, specifically examining their impact on GDP per capita growth, significance of workers' remittances in economic growth, influence of remittances on Gross Capital Formation Ratio, the effect of remittances on household final consumption expenditure, relationships between remittances and trade as the percentage of GDP, and the effects of remittances on population growth. The researcher selected six countries in South Asia as the sample for this study. The panel data was used to test the relationship between the observed variables, employing both random and fixed effect models to test study's hypotheses. Findings revealed a positive relationship between the growth of foreign remittances and indicators such as GDP per capita, the overall economic growth, gross capital creation, and household consumption spending. These results thus highlight the significant influence that the remittances have had on Pakistan's economic indices and underscore the importance of remittance flows for the growth and stability of the Pakistani economy.