Impact of External Inflows on Standard of Living: A South Asian Perspective

Abstract

The main objective of this study is to examine the impact of external inflows on standard of living. After empirical investigation, findings showed that with the increase in FDI, REMIT and ICTX the PCI of the said economies has increased by 0.49, 0.02 and 0.05 percentage points while TOP showed an insignificant relationship with the social indicators. With the increase in TOP there are 0.01 percentage point decreases in the PCI of the SAARC countries. On the foundation of these findings, it is recommended that to raise the PCI and standards of living in the south Asia the external inflows may be run in a manner that they positively affect all those areas of the economic system which may higher the standards of living by increasing the income per capita.