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THE EFFECTS OF DEVALUATION OF CURRENCY ON ECONOMIC GROWTH THE MEDIATING ROLE OF REMITTANCES

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40 Pages : 410-420

http://dx.doi.org/10.31703/gssr.2022(VII-II).40      10.31703/gssr.2022(VII-II).40      Published : Jun 2022

The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances

Abstract

    This study looks into how the devaluation of the Pakistani currency affected remittances (REM) and economic growth (EG) in Pakistan. The study also looks at how REM affects the link between the devaluation of the currency and the growth of the economy in Pakistan Over the course of 45 years, from 1972 to 2016. The study uses Autoregressive Distributive Lag Model (ARDL) for examining the relationship. This study uses sensitivity analysis and chooses among different econometric techniques, which take into account the endogeneity problem. The results show that remittances partially mediate the relationship between the devaluation of currency and economic growth.Moreover, a one unit rise in REM leads to a 0.47 unit decrease in EG.

    (1) Naveed Ali
    Department of Economics & Development Studies, University of Swat, KP, Pakistan
    (2) Izhar Ul Hassan
    Government of Pakhtunkhwa Planning and Development Department, Peshawar, KP, Pakistan.
    (3) Abdul Wahab
    Qurtaba University of Science and Technology, Peshawar, KP, Pakistan
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Cite this article

APA

    APA : Ali, N., Hassan, I. U., & Wahab, A. (2022). The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances. Global Social Sciences Review, VII(II), 410-420. https://doi.org/10.31703/gssr.2022(VII-II).40

CHICAGO

    CHICAGO : Ali, Naveed, Izhar Ul Hassan, and Abdul Wahab. 2022. "The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances." Global Social Sciences Review, VII (II): 410-420 doi: 10.31703/gssr.2022(VII-II).40

HARVARD

    HARVARD : ALI, N., HASSAN, I. U. & WAHAB, A. 2022. The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances. Global Social Sciences Review, VII, 410-420.

MHRA

    MHRA : Ali, Naveed, Izhar Ul Hassan, and Abdul Wahab. 2022. "The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances." Global Social Sciences Review, VII: 410-420

MLA

    MLA : Ali, Naveed, Izhar Ul Hassan, and Abdul Wahab. "The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances." Global Social Sciences Review, VII.II (2022): 410-420 Print.

OXFORD

    OXFORD : Ali, Naveed, Hassan, Izhar Ul, and Wahab, Abdul (2022), "The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances", Global Social Sciences Review, VII (II), 410-420

TURABIAN

    TURABIAN : Ali, Naveed, Izhar Ul Hassan, and Abdul Wahab. "The Effects of Devaluation of Currency on Economic Growth: The Mediating Role of Remittances." Global Social Sciences Review VII, no. II (2022): 410-420. https://doi.org/10.31703/gssr.2022(VII-II).40