Open AccessDo Migrant Remittances Promote Corruption in Pakistan?
Author(s) -
Anam Alamdar,
Munazza Ahmed,
Atif Khan Jadoon
Publication year - 2022
Publication title -
irasd journal of economics
Language(s) - English
Resource type - Journals
eISSN - 2709-6742
pISSN - 2709-6734
DOI - 10.52131/joe.2022.0401.0063
Subject(s) - resource curse , curse , distributed lag , economics , language change , short run , perspective (graphical) , government spending , government (linguistics) , democracy , politics , error correction model , public good , monetary economics , development economics , cointegration , econometrics , microeconomics , market economy , political science , linguistics , philosophy , literature , art , welfare , artificial intelligence , sociology , anthropology , computer science , law
Remittances play a very important role in a political economy perspective that how do remittances impact corruption in the recipient economy? This paper explored the hypothesis that whether the remittances worked as a cure by decreasing corruption being a political resource (accountability perspective), or remittances worked as a curse by allowing the government to divert spending from public goods provision (substitution perspective). The autoregressive distributed lag (ARDL) method is used to check whether a long-run equilibrium exists among selected indicators from 1984 to 2018. The Error Correction Model was used to get the short-run regression results. Empirical analyses have shown the support for remittances being a curse, not a cure for Pakistan in the long run whereas, short-run results revealed reversed resource curse hypothesis.