Unveiling The Driver Of Economic Growth: Impact Of Labor, Capital, Remittance, FDI, And Export

Abstract

The purpose of this study to examine the impact of labor, capital, FDI, exports, and remittances on economic growth of Pakistan. For this purpose, this study uses panel data for the period 1971 to 2020. Autoregressive distributed lag model (ARDL) and bound cointegration approach have been used to know specific factors that are affecting on the economic growth.  The results indicate that remittances have positive and significant impact on the economic growth of Pakistan in the short run and long run. This study further observes that FDI, labor force, capital also has positive and significant impact on the economic growth for both short run and long run. Based on the study's findings, policymakers should anticipate that remittances and FDI will be crucial in accelerating Pakistan's economic growth. This study unique in nature its use multiple factors that are affecting on the economic growth of developing country like Pakistan.