Worker’s Remittances and Economic Development in Pakistan A Time Series Analysis (1980-2010)

Zia Ur Rahman


The present study is conducted to examine the role of worker’s remittances on the economic development of the Pakistan. Time series data is utilized which is comprises on 1980 to 2010, from the world data bank and Handbook of statistics. Co-integration technique has been used to explain the long run relationship between worker’s remittances and economic development in Pakistan. Results indicated that there is long run relationship exist between the worker’s remittances and economic development. Furthermore study applied VECM to detect the short run adjustment in variables to attain equilibrium in the long run. However, the results indicated that in short run Economic development is in disequilibrium position.

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