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Globally, the remittances have increased significantly recently, most of which have gone to developing countries. In light of recent evidence of the role of remittances in economic development, it is pertinent to investigate how human development responds to remittances. Based on human capital and investment decision theory, the present study investigates the short and long-run asymmetric impacts on human development for six South Asian countries from 1990 to 2021 using the panel asymmetric autoregressive distributive lag model (PNARDL). A robustness check has been done using the dynamic common correlated effect pooled mean group effect model (CCEPMG). The direction of causality is examined using a panel dynamic heterogenous model. The result of this study indicates that remittances have a significant short and long-run asymmetric impact supporting the human capital and investment decision theory. Results suggest positive shocks promote human development while negative shocks have the opposite effect. Causality results suggest a two-way relationship supporting remittance-led human capital development in South Asia. In line with the above findings, the study recommends encouraging higher remittances and integrating development policies with migration policies to promote education, health, and human development. [ABSTRACT FROM AUTHOR]

This research examines the efficacy of foreign aid in promoting human development in South Asian countries from 1990 to 2019. The study uses panel data analysis (cointegration, causality, and the GMM-system model) to assess the efficacy of foreign aid on human development. The study also examines the role of the conditioning factor in the interplay between aid and investment. Overall, the findings of this paper show that the effects of aid on human development are: directly negative and indirectly positive for three channels (trade, infrastructure, and corruption). Further, the study finds one-way causality from human development to foreign aid, indicating that higher human development attracts higher aid, not vice-versa. Therefore, by following open oriented trade regime, improving infrastructure facilities, and reducing corruption, aid effectiveness could be enhanced for South Asian countries. [ABSTRACT FROM AUTHOR]