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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

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Abstract

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.

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Funding

This work is supported by the National Social Science Fund (Key Project Grant No. 18AGL028).

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Authors and Affiliations

  1. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211106, People’s Republic of China

    Shah Zaman & Zilong Wang

  2. Postdoctoral Station of Management Science and Engineering, College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, 211100, People’s Republic of China

    Qamar uz Zaman

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  1. Shah Zaman
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  2. Zilong Wang
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  3. Qamar uz Zaman
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Contributions

All authors contributed to the study conception and design. Material preparation, data collection, and analysis were performed by Shah Zama, Dr. Qamar uz Zaman, and Dr. Zilong Wang. The first draft of the manuscript was written by Shah Zaman and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

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Correspondence to Shah Zaman.

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Zaman, S., Wang, Z. & Zaman, Q.u. 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. Environ Sci Pollut Res 28, 17865–17877 (2021). https://doi.org/10.1007/s11356-020-11943-1

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