Empowering Progress: Examining Remittance’s Role in Alleviating Poverty across Developing Nations

Abstract

This paper investigates the 18 developing countries data from the period of 2001 to 2025 to check the remittances positive impact on reduction of poverty. The study employing tests of unit root on panel data set and also check the test of Pedroni cointegration on model of ARDL for panel data analysis. The analysis reveals that families spend this money on important things to fulfills basic necessities of life on daily basis. And also spends on healthcare services to makes lives better. The dependent and independent variables that are used to check the panel data analysis such as capital formation at fixed gross level, labor force participation rate and capital in terms of human and trade that all variables bring negative impact on poverty. The inflation rate indicates positive relationship with poverty. The study also found that when prices increase because of inflation indicate worse poverty level. So, in developing economies the outcomes reveal negative impact of remittances on poverty reduction. The spending ratio on jobs, education, businesses and on trade with other countries decrease the ratio of poverty. So, governments should make it easy for people to send money back through legal bank that work in abroad. This is the best way to help poor families and get more money from foreign country also to stable economic progress and development goals.