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Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence
[Centre d'Analyse Théorique et de Traitement des données économiques REMITTANCES, INEQUALITY AND POVERTY IN PAKISTAN: MACRO AND MICROECONOMIC EVIDENCE Mazhar MUGHAL]

Author

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  • Amar Iqbal Anwar
  • 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 paper studies the impact of remittance incidence on inequality and poverty in Pakistan. Using the 2005-06 and 2007-08 Household Integrated Economic Survey data, we find that remittances substantially lower the poverty headcount, as well as the depth and severity of poverty. Foreign remittances have also a beneficial effect on economic inequality in Pakistan. The contribution of foreign remittances in poverty alleviation and inequality reduction is much stronger than that of internal remittances. Time series analysis for the period 1979 – 2007 suggests that among the three main remittance-sending regions, remittances from North America have the strongest equalizing effect in Pakistan.

Suggested Citation

  • Amar Iqbal Anwar & Mazhar Mughal, 2012. "Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence [Centre d'Analyse Théorique et de Traitement des données économiques REMITTANCES, INEQUALITY AND POVERTY IN PAKISTA," Working Papers hal-01885153, HAL.
    • Handle: RePEc:hal:wpaper:hal-01885153
    Note: View the original document on HAL open archive server: https://univ-pau.hal.science/hal-01885153
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    1. Farid Makhlouf & Mazhar Mughal, 2013. "Remittances, Dutch Disease, And Competitiveness: A Bayesian Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(2), pages 67-97, June.
    2. Farid Makhlouf & Adil Naamane, 2013. "The Impact of Remittances on Economic Growth: The Evidence from Morocco," Working Papers hal-01885148, HAL.
    3. Mazhar Mughal & Farid Makhlouf, 2013. "Labour effects of foreign and domestic remittances -- evidence from Pakistan," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(6), pages 798-821, November.
    4. Farid Makhlouf & Adil Naamane, 2013. "The Impact of Remittances on Economic Growth: The Evidence from Morocco," Working Papers hal-01885148, HAL.
    5. William M. Fonta & Elias T. Ayuk & Jude O. Chukwu & Onyukwu E. Onyukwu & Cletus C. Agu & Innocent O. Umenwa, 2015. "Dynamics of remittance utilization by Nigerian households," Progress in Development Studies, , vol. 15(4), pages 343-357, October.
    6. Shujaat Abbas, 2016. "Remittances Flow to Pakistan: A Gravity Approach," Journal Transition Studies Review, Transition Academia Press, vol. 23(1), pages 97-106.
    7. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.
    8. Farid Makhlouf & Mazhar Yasin Mughal, 2013. "Remittances, Dutch Disease, and Competitiveness: a Bayesian Analysis," Post-Print hal-01884858, HAL.
    9. Junaid Ahmed, 2012. "Cyclical Properties of Migrant's Remittances to Pakistan: What the data tell us," Economics Bulletin, AccessEcon, vol. 32(4), pages 3266-3278.
    10. Junaid Ahmed & Mazhar Mughal, 2019. "Cost Of Remitting To Pakistan Across Major Corridors," PIDE Research Briefs 2019:04, Pakistan Institute of Development Economics.
    11. Zsóka Kóczán & Franz Loyola, 2021. "How do migration and remittances affect inequality? A case study of Mexico," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 360-381, March.
    12. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2013. "Blessing or curse: The stabilizing role of remittances, foreign aid and FDI to Pakistan," University of Göttingen Working Papers in Economics 153, University of Goettingen, Department of Economics.
    13. Yaya Keho, 2017. "Effect of remittances on household consumption in African and Asian countries: A quantile regression approach," Economics Bulletin, AccessEcon, vol. 37(3), pages 1753-1767.
    14. 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.
    15. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.

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    More about this item

    Keywords

    Inequality; Remittances; Poverty; Pakistan; South Asia;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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