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Motives to remit: some microeconomic evidence from Pakistan

Author

Listed:
  • Amar Iqbal Anwar

    () (Ted Rogers School of Management, Ryerson University)

  • Mazhar Yaseen Mughal

    () (Centre dAnalyse et Traitement Th´eorique des Donn´ees)

Abstract

Using household economic survey data for the years 2005-06 and 2007-08, we examine the economic, demographic and geographical characteristics of remittance receiving households in Pakistan. We find that altruism is the most likely motive behind the remittances sent back by Pakistanis living abroad. However, co-insurance and investment may also have played some role. Gender of the household head, household size, family income and urban/rural setting appear to be the remittances' main determinants, whereas education and family wealth play a minor role.

Suggested Citation

  • Amar Iqbal Anwar & Mazhar Yaseen Mughal, 2012. "Motives to remit: some microeconomic evidence from Pakistan," Economics Bulletin, AccessEcon, vol. 32(1), pages 574-585.
  • Handle: RePEc:ebl:ecbull:eb-11-00502
    as

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    References listed on IDEAS

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    1. Hoddinott, John, 1994. "A Model of Migration and Remittances Applied to Western Kenya," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 459-476, July.
    2. Banerjee, Biswajit, 1984. "The probability, size and uses of remittances from urban to rural areas in India," Journal of Development Economics, Elsevier, vol. 16(3), pages 293-311, December.
    3. Bugamelli, Matteo & Paternò, Francesco, 2009. "Do Workers' Remittances Reduce the Probability of Current Account Reversals?," World Development, Elsevier, vol. 37(12), pages 1821-1838, December.
    4. Ilahi, Nadeem & Jafarey, Saqib, 1999. "Guestworker migration, remittances and the extended family: evidence from Pakistan," Journal of Development Economics, Elsevier, vol. 58(2), pages 485-512, April.
    5. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
    6. Cox, Donald & Eser, Zekeriya & Jimenez, Emmanuel, 1998. "Motives for private transfers over the life cycle: An analytical framework and evidence for Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 57-80, February.
    7. Holst, Elke & Schrooten, Mechthild, 2006. "Migration and Money: What determines Remittances? Evidence from Germany," Discussion Paper Series a477, Institute of Economic Research, Hitotsubashi University.
    8. Gertrud Schrieder & Beatrice Knerr, 2000. "Labour Migration as a Social Security Mechanism for Smallholder Households in Sub-Saharan Africa: The Case of Cameroon," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 223-236.
    9. Catalina Amuedo-Dorantes & Susan Pozo, 2006. "Remittances as insurance: evidence from Mexican immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 227-254, June.
    10. Mazhar Yasin mughal & Farid Makhlouf, 2011. "Volatility of Remittances to Pakistan: What do the Data Tell?," Economics Bulletin, AccessEcon, vol. 31(1), pages 605-612.
    11. Mazhar Y. Mughal, 2013. "Remittances As Development Strategy: Stepping Stones Or Slippery Slope?," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(4), pages 583-595, May.
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    Citations

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    Cited by:

    1. Jawad, Muhammad & Qayyum, Abdul, 2015. "Modelling the Impact of Policy Environment on Inflows of Worker’s Remittances in Pakistan: A Multivariate Analysis," MPRA Paper 85497, University Library of Munich, Germany.
    2. repec:eee:wdevel:v:99:y:2017:i:c:p:230-252 is not listed on IDEAS
    3. Giulia Bettin, 2012. "The remittance behaviour of African diaspora in Belgium," Economics Bulletin, AccessEcon, vol. 32(2), pages 157-157.
    4. Mazhar Yasin MUGHAL & Amar Iqbal ANWAR, 2013. "Foreign Financial Flows and Terrorism In Developing Countries," Working Papers 2013-2014_1, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Sep 2013.
    5. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," Center for European, Governance and Economic Development Research Discussion Papers 209, University of Goettingen, Department of Economics.
    6. 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.
    7. 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.
    8. Mazhar Yasin MUGHAL & Amar Iqbal ANWAR, 2012. "Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence," Working Papers 2012-2013_2, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Aug 2012.
    9. Gloria Clarissa O. Dzeha, 2016. "The decipher, theory or empirics: a review of remittance studies," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(2), pages 113-134.

    More about this item

    Keywords

    International Remittances; Altruism; remittance motives; Pakistan;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F2 - International Economics - - International Factor Movements and International Business

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