Exploring the relationship between remittances received, education expenditures, energy use, income, poverty, and economic growth: fresh empirical evidence in the context of selected remittances receiving countries.

This study explores the relationship between remittances received, education expenditure, energy use, income, poverty, and economic growth for a panel of the nine selected remittance-receiving countries (Bangladesh, China, Egypt, India, Indonesia, Mexico, Nigeria, Pakistan, and Philippines). World Development Indicator database is used for retrieving data from the period of 1990 to 2014. Panel cointegration technique is used to test the long-run relationship among studied variables. Furthermore, the autoregressive distributive lag (ARDL) model is applied to confirm the presence of a long-run and short-run relationship. The findings of the ARDL model indicate that remittances received positively influence economic growth, and there is a significant relationship between remittances received and economic growth during the long-run. Education expenditure, energy use, and income also positively and significantly impact economic growth during the long-run. In contrast, final household consumption used in this study as a proxy of poverty showed a significant negative effect on economic growth during the long-run, which indicates that increasing poverty will reduce economic growth; on the other hand, reducing poverty will boost economic growth in the selected countries during the long-run.