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Remittances and Household Welfare: A Case Study of Pakistan

SSRN Electronic Journal
2010
  • 8
    Citations
  • 2,615
    Usage
  • 57
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    8
    • Citation Indexes
      8
  • Usage
    2,615
    • Abstract Views
      2,146
    • Downloads
      469
  • Captures
    57
  • Ratings
    • Download Rank
      122,829

Article Description

This paper examines the impact of remittances on economy and household welfare in Pakistan by using a general equilibrium framework and microeconometric analysis. The first approach is to highlight the macroeconomic and sectoral effects of a reduction in remittances, while the second is to show how remittances decrease the probability of being poor and affect the household consumption expenditure and hence poverty. The findings suggest that reduction in remittances will reduce gross domestic product, investment, and household consumption, which in turn will increase poverty. On the other hand, the probability of households becoming poor decreases by 12.7% if they receive remittances. The poverty headcount ratio and Gini coefficient decline by 7.8% and 4.8%, respectively, for household-receiving remittances. Given the important role of remittance, the key challenge for the government is to provide incentives to attract more remittances sent through formal channels and ensure their productive use.

Bibliographic Details

Ahmed, Vaqar; Sugiyarto, Guntur; Jha, Shikha

Elsevier BV

International Migration and Remittances; Household Welfare; Poverty; Inequality; CGE Model; Microeconometrics; Pakistan

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