Impact of Foreign Remittances, Foreign Direct Investment and Financial Development on Human Development of Selected Asian Countries

Abstract

Foreign remittances play a contributing role in determining the growth potential of the nations of the world. Considering its significant role, the existing research has analyzed the major factors affecting the economic growth of some selected Asian nations. The data was utilized from 2005 to 2020 in some selected Asian countries. Human development was used as the dependent variable. However, foreign remittances, financial development and foreign direct investment, trade openness and labor force participation rate were taken as independent variables. The OLS regression results indicated that foreign remittances, foreign direct investment, and financial development led to enhanced nations' human development. It was also found that trade openness and labor force participation also boosted the human development of the Asian economies. The findings suggested that the Government must focus on remittance inflow in concerned economies. These economies must have stable financial and political environments to attract more investment from foreign countries and have more production and human development. Finally, the Government should make credit facilities access and process very easy for the people of communities to increase investment, earnings, and economic growth.