Do Remittance Inflows, Investment Attributes, and Regional Integration Accelerate Sustainable Economic Growth in Asia?

To lift the regional economic development and sustainability, foreign, domestic, and workers' remittance investment play their role in the progression of the economic cycle. By setting the objective, the current study examines the role of foreign direct investment inflows (FDI), private capital investment (PCI), and workers' remittance (RMTw) as independent variables and demographic pressure as a control variable on economic growth. Furthermore, considering Asia's regional perspective of 43 developing and emerging economies, the role of globalization as a proxy for regional integration has also been analyzed. GDP per capita has been taken as a proxy of sustainable economic growth (SEG), and time has been taken from 2006 to 2019. By applying the two-step system generalized method of moments (SGMM), results say that investment attributes, FDI, and PCI support and accelerate the SEG in Asia by adding infrastructure development and trading activities. On the other hand, it states that RMTw negatively affects the SEG by putting economic pressure and reducing the workforce and idle money. Furthermore, regional integration aggressively supports the SEG in Asia, promoting Asia's trade, social, and political activities. It concludes that Asian SEG is influenced by the foreign and domestic inflows and regional integration that actively promotes economic growth, which needs to be supported by the governments in relaxing the investment regulation. Furthermore, remittance should be channelized with financial institutions to show its active contribution to the economic cycle.

Automated summary

In order to promote regional economic development and sustainability, foreign, domestic, and workers' remittance investment each play a role in advancing the economic cycle. This study investigates the impact of foreign direct investment inflows (FDI), private capital investment (PCI), and workers' remittance (RMTw) as independent variables, as well as demographic pressure as a control variable, on economic growth. Additionally, the role of globalization as a proxy for regional integration in Asia's developing and emerging economies is analyzed. The results suggest that FDI and PCI contribute to sustainable economic growth (SEG) in Asia by promoting infrastructure development and trade activities, while RMTw has a negative effect on SEG due to economic pressure and reduced workforce and idle money. Regional integration strongly supports SEG in Asia by boosting trade, social, and political activities. It is concluded that Asian SEG is influenced by foreign and domestic inflows and regional integration, and governments should relax investment regulations and channelize remittance through financial institutions to actively contribute to the economic cycle.