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The Role of Agriculture and Foreign Remittances in Mitigating Rural Poverty: Empirical Evidence from Pakistan

Authors Liu Y, Amin A, Rasool SF, Zaman QU

Received 22 October 2019

Accepted for publication 5 December 2019

Published 16 January 2020 Volume 2020:13 Pages 13—26


Checked for plagiarism Yes

Review by Single anonymous peer review

Peer reviewer comments 3

Editor who approved publication: Professor Marco Carotenuto

Yaping Liu, 1 Asad Amin, 1 Samma Faiz Rasool, 2 Qamar Uz Zaman 3

1Business School, Guangxi University Nanning, Guangxi, 530004, People’s Republic of China; 2Postdoctoral Station of Statistical, School of Innovation and Entrepreneurship, Entrepreneurship Institute, Guangzhou University, Guangzhou 510006, People’s Republic of China; 3Postdoctoral Station of Management Science and Engineering, College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211100, People’s Republic of China

Correspondence: Asad Amin
Business School, Guangxi University, Daxue E Road, Xixiangtang, Nanning, Guangxi 530004, People’s Republic of China
Tel +86 15676785744
Samma Faiz Rasool
Postdoctoral Station of Statistical, School of Innovation and Entrepreneurship, Entrepreneurship Institute, Guangzhou University, 230 Wai Huan Xi Road, Guangzhou 510006, People’s Republic of China
Tel +86 19821829207

Background: This study examines the role of the agriculture and foreign remittances in mitigating rural poverty in Pakistan.
Methods: The data used relate to the period 1980– 2017 and are sourced from the World Bank and the Economic Survey of Pakistan produced annually by the Ministry of Finance. The ARDL technique was used to calculate the effects of agriculture and foreign remittances on rural poverty.
Results: The results of this study indicate that agriculture helps to mitigate rural poverty in the long run, but that foreign remittances are more effective in reducing rural poverty in the short run. In this paper, results confirm the existence of correlations between agriculture, foreign remittances and rural poverty.
Conclusion: The outcomes of this study support the call for the government to introduce agricultural credit schemes for the rural population of Pakistan. Moreover, the government should take steps to enhance diplomatic relations with other countries and simplify policies and visa application procedures for Pakistani workers. Finally, this study suggests the government should simplify procedures for the transfer of foreign remittances to Pakistan.

Keywords: foreign remittances, rural poverty, agriculture, Pakistan

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