Syed Jawad Hussain Shahzad, Faisal Abbas, Sajid Ali, Syed Ali Raza
Foreign remittance inflow to Pakistan is mounting erratically upward from almost a decade and half at a pace never seen historically. We examine the explosiveness in remittance inflow to Pakistan from July 1972 to July 2016 and from various source (host) countries. We use a rolling-window based augmented Dickey–Fuller unit root test and find that periods of abrupt remittance inflow match with the important historical events occurring in the country and internationally. Overall, we put forward conceptually the new notion of temporary explosiveness in the remittance inflow.
Remittance, explosiveness, rolling window unit root, unforeseen events
Cite this paper
Syed Jawad Hussain Shahzad, Faisal Abbas, Sajid Ali, Syed Ali Raza. (2019) Explosiveness in Foreign Remittance Inflow to Pakistan. International Journal of Economics and Management Systems, 4, 251-258