Overseas Labour Migration, Remittances, International Trade and Economic Growth Nexus in Pakistan

Foreign remittances are a source of capital inflows from foreign workers to their families or other individuals in their home countries. In many countries, remittances constitute a significant portion of a nation’s economic growth. The study evaluates the effect of remittances, overseas migration, and international trade on the economic growth of Pakistan by using the ARDL technique. Data for this study have been taken from 1972 to 2020. The results indicate that labour migration, employment, remittances, and trade have a positive and significant influence on economic growth. The study suggests that households may utilize remittances in productive ways and government may devise such policies that enhance trade.