UNLOCKING THE RURAL PROSPERITY: A SPATIAL ECONOMETRIC ANALYSIS OF REMITTANCE-DRIVEN AGRICULTURAL MODERNIZATION IN PAKISTAN

Abstract

This study examines impact of remittances on agricultural modernization and sustainability in Pakistan. Agriculture is a crucial sector for country's economy, yet it faces significant challenges like outdated farming methods, limited access to modern technology, and environmental degradation. The remittances from Pakistanis working abroad represent a substantial source of the income for many rural households and have the potential to finance necessary agricultural advancements. This research explores that how these funds are allocated, the factors influencing investment decisions, and their effect on the adoption of modern agricultural technologies and sustainable practices. Moreover, study assesses the short run and long run relationship between agricultural productivity and foreign remittances using the ARDL approach to cointegration. The findings suggest that while remittances can enhance agricultural productivity & sustainability, their actual utilization depends on a supportive policy environment, improved financial services, & capacity-building initiatives. By addressing these factors, the remittances can be a powerful tool for promoting the rural development and economic growth in Pakistan.