Relationship Between Remittances and Hdi in Saarc Countries
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Faculty of Humanities and Social Science
Abstract
In order to provide an empirical insight into the role of international migrant remittance
inflows in low-income countries and developing countries, this paper examines the
long-run impact of international migrant remittance inflows on overall human
development index in SAARC countries. The fixed-effects annual panel data estimation
procedure for the period, 1990 to 2018, was used for the empirical analysis. The paper
suggests that, contrary to the apprehension of the remittance-pessimistic developmental
school, international migrant remittance inflows have a significant positive impact on
overall human development in SAARC countries. This evidence suggests that the
essential role of international migrant remittance inflows on the socioeconomic
development of SAARC region should not be undervalued in formulating any
contemporary economic development strategy for the sub-region. Therefore,
governments of this sub region should pursue remittance-attracting policy as one of the
macroeconomic policies to stimulate Human Development Index.
Key Words: HDI, Remittances, SAARC, Fixed-effects