Human Development Remittances and Economic Growth: An Evidence from Selected Developing Countries

Abstract

This study aims to explore the influence of human development and remittances on the economic growth of eight developing nations spanning from 2000 to 2020. The primary findings of this research reveal a significant and positive relationship between human development and the economic advancement of these developing countries. Descriptive statistics were employed to elucidate the characteristics of the data variables, providing insights into the various factors related to human development, remittances, and economic growth. The results underscored the noteworthy and positive impact of remittances on the GDP of these nations. However, Govt. expenditure on education has an insignificant and negative effect on GDP. Similarly, GDP is negatively affected by inflation. However, foreign direct investment (FDI) significantly and positively affected the GDP whereas the exchange rate shows a negative and significant effect on GDP. Like, the population has a positive and extremely significant impact on GDP. Primary and secondary school enrolment has a positive and significant impact on GDP. Similarly, tertiary school enrolment has also high impact on GDP. Brazil has higher economic growth from selected developing countries followed by Thailand whereas Egypt and Pakistan receive the maximum amount of remittance among selected developing countries. Similarly, Brazil has a maximum expenditure on education (>6% of GDP) whereas Pakistan has a minimum amount on education (about 2.5% of GDP). Nepal has the maximum primary enrolment (> 140% gross), Thailand has the maximum secondary enrolment and Brazil has the maximum tertiary enrolment while Pakistan has the lowest primary and secondary enrolment.