An Analysis of the Impact of Burden of Debt, Depreciation of Exchange Rate, Foreign Remittances and Institutional Quality on Distribution of Income
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Date
2019-11-22
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UMT, Lahore
Abstract
Due to economic crises in Pakistan, there is no doubt that the debt has an adverse impact on the
lives of the poor and has become one of the major causes of an increase perhaps misery over time.
The present research attempts to explore the effects of debt services on the distribution of income
in Pakistan analyzed from 1984 to 2018 with time-series information.
It considered that currency devaluation in developing countries is a risk for income distribution.
The previous analysis provides evidence of a positive effect of foreign remittances in developing
countries.
The Autoregressive Distributed Lags (ARDL) method used to examine the impact of debt on
income distribution. The findings indicate the significant & positive relationship between service
of debt and GINI coefficient, which shows that a rise in debt will lead to a widening of the income
distribution.