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Great Expectations? Remittances and Asset Accumulation in Pakistan

Author

Listed:
  • Junaid Ahmed
  • Mazhar Mughal

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract
This study examines asset accumulation patterns of the recipients of foreign and domestic remittances. Using the representative 2010-11 Pakistani households' survey and employing a number of matching routines, we analyse stocks of consumer, productive, housing and financial assets among migrants' stay-behind households. We find that asset accumulation among remittance-receiving households depends upon the nature and magnitude of remittances as well as the economic situation and geographical location of the recipient households. Foreign remittances lead to a substantial increase in household assets while no significant change results from domestic remittances. Households receiving foreign remittances hold a higher stock of assets for all categories of assets, even though the increase in productive assets is low. Moreover, rural and poor recipients of foreign remittances accumulate more assets than their non-recipient counterparts. Asset accumulation also increases with the amount of remittance received. Findings show that foreign remittances are considered as a mainly transitory income, and are used to generate precautionary savings in cash and kind.

Suggested Citation

  • Junaid Ahmed & Mazhar Mughal, 2015. "Great Expectations? Remittances and Asset Accumulation in Pakistan," Working papers of CATT hal-01885145, HAL.
    • Handle: RePEc:hal:wpcatt:hal-01885145
    Note: View the original document on HAL open archive server: https://hal-univ-pau.archives-ouvertes.fr/hal-01885145
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    References listed on IDEAS

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    Cited by:

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    3. Mazhar Mughal & Rashid Javed, 2022. "Perturbed nuptiality, delayed fertility: childbirth effects of Covid19," Journal of Population Research, Springer, vol. 39(4), pages 589-597, December.
    4. Boburmirzo Ibrokhimov & Rashid Javed & Mazhar Mughal, 2023. "Migrants remittances and fertility in the Post-Soviet states," Post-Communist Economies, Taylor & Francis Journals, vol. 35(6), pages 574-596, August.
    5. Ahmed Raza Cheema & Ian Coxhead, 2022. "Does Dowry Drive Labor Export? Evidence from Pakistan," The Developing Economies, Institute of Developing Economies, vol. 60(4), pages 173-205, December.
    6. Ubaid Ali & Mazhar Mughal & Lionel de Boisdeffre, 2023. "Migrant remittances, agriculture investment and cropping patterns," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 899-920, September.
    7. Junaid Ahmed & Mazhar Mughal, 2019. "Cost Of Remitting To Pakistan Across Major Corridors," PIDE Research Briefs 2019:04, Pakistan Institute of Development Economics.
    8. Ayaz Ahmed & Nasir Iqbal & Ghulam Mustafa, 2020. "Measuring the Impact of Remittances on Housing Demand: Evidence from Large Cities in Pakistan," PIDE-Working Papers 2020:10, Pakistan Institute of Development Economics.

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    More about this item

    Keywords

    Foreign remittances; Domestic remittances; Asset accumulation; Pakistan;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • I2 - Health, Education, and Welfare - - Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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