LITERATURE REVIEW # 1 :

Khan and Islam (2013) examine the effect of remittances on inflation by using time series data.
Remittances and iflation variables have been used. Vector Autoregressive technique has been
applied. Results show that, there exists unidirectional causal relationship from remittances
inflows to the inflation, the relationship is significant in the long run, but no relationship is found
between them in the short-run, it also indicates that any shock in the shirt-run inflation gradually
adjusted to the long-run equilibrium. It is recommended that one percent increase in remittances
inflows invreases inflation rate by 2.48 percent in the long run.

LITERATURE REVIEW # 2 :

Mumuni and Quaido(2016) ivestigates the effect of international remittenaces on inflation in

Ghana by using time series data. Inflation(CPI), trade oppennes, international remittances,
money and GDP variables have been used.Bounds testing approach technique have been applied.
Results show that international remittances have a significant effect on inflation in the long run,
while in short run no significant relationship is evident between inflation and remittances. It is
recommended that in order to reduce the effect of international remittances on inflation rate and
increase the impact on growth, the government should improve public infrastructure so that the
excessive transfer fees whould reduce and these remittances could be channeled into more
productive sectors rather than being used mainly for consumption purposes.

LITERATURE REVIEW # 3 :

Nisar and Tufail (2013) examine the analysis of relationship between remittances and inflation in
Pakistan by using time series data. Inflation, foof inflation, footwear and textile inflation,
housing and construction inflation, remittances, money supply, per capita income, budget deficit
and trade oppenness. Vector erron correction techniques has been applied. Results show that
existance of one cointegrated for all equations, remittances, money supply and real per capita
have positive impact on inflation and its different categories, it also says that among different
inflation categories food inflation is most effected and housing and construction inflation is least
effected by remittances, budget deficit is significant in reducing foot wear and textile inflation
only, trade oppeness is effective in reducing all types of inflation by same magnitude and
strength. It is recommended that it has become necessary for government to channelize the
remitted funds into productive investment to avoid surge in demand pull inflation.
LITERATURE REVIEW # 4 :

Roy and Rahman(2014) examine the empirical analysis relationship of remittance and inflation
in Bangladesh by using time series data. Inflation, Food inflation, Industrial production index,
Workers’ remittances, Broad money, Government expenditure and exchange rate variables have
bee used.Cointegration technique and vector error correction model techniquehave been applied.
Results show that remittance inflows cause an inflationary pressure in Bangladesh while the
responsiveness of food inflation is almost two and half time higher than general inflation. It is
recommended that there is a need to more deeply understand the economic impacts of incoming
worker’s remittances, welfare cost can be involved and is important to consider both positive and
negative impacts of remittance inflows.

LITERATURE REVIEW # 5 :

Kalim and Shahbaz(2008) examine the various factors affecting poverty with particular emphasis
on the relationship between poverty and foreign remittances by using time series data. Poverty,
remittances trade openness, GDP growth, inflation, urbanization and tax rates variables have
been used. Fully modified ordinary least square( FMOL) technique has been applied. Results
show the hypothesis that remittances bring a decline in poverty. It is suggested that poverty has
positive association with FDI, inflation, tax and initial trade openness while it has negative
relationship with remittances, GDP per capita, and Urbanization.