The pattern, sources, and growth of remittances to Pakistan: The kinked exponential approach
This paper examines the pattern, sources and growth of remittances to Pakistan. It analyses the growing trend of remittances and share of remittances to GDP over the period 1972-2014. We use the kinked exponential model (Boyce, 1986, 1987) to estimates the growing trend of remittances in Pakistan. The results show that remittances received by Pakistan have three distinct growth phases over the study period – Phase I (1973 – 1983), Phase II (1984 – 2000) and Phase III (2001 – 2014). The remittances received by Pakistan have positive growth during the first and the third period while the second period shows negative growth. Before globalization, the UK was the major source of remittances to Pakistan but after globalization, the sources of remittances to Pakistan have been cantered on Saudi Arabia, the UAE, and other Gulf countries.
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