IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v50y2011i3p189-208.html
   My bibliography  Save this article

Remittances in Pakistan: Why They Have Gone Up and Why They Are Not Coming Down

Author

Listed:
  • Udo Kock

    (Resident Representative in the West Bank and Gaza for the International Monetary Fund (IMF))

  • Yan Sun

    (Senior Economist in the IMF's European Department)

Abstract

The flow of workers’ remittances to Pakistan has more than quadrupled in the last eight years and shows no sign of slowing down, despite the economic downturn in the Gulf Cooperation Council and other important host countries for Pakistani workers. This paper analyses the forces that have driven remittance flows to Pakistan in recent years. A methodological innovation is that we study the behaviour of per capita remittances and draw a close link between remittances and remitters’ earning capacity, in the belief that higher earning power leads to more remittances. Our main conclusions are that (i) the growth in the inflow of workers’ remittances to Pakistan is in large part due to an increase in worker migration, (ii) the higher skill levels of migrating workers has helped boost remittances, and (iii) other imporant determinants of remittances to Pakistan are agricultural output and the relative yield on investments in the host and home countries.

Suggested Citation

  • Udo Kock & Yan Sun, 2011. "Remittances in Pakistan: Why They Have Gone Up and Why They Are Not Coming Down," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 50(3), pages 189-208.
  • Handle: RePEc:pid:journl:v:50:y:2011:i:3:p:189-208
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2011/Volume3/189-208.pdf
    Download Restriction: no

    More about this item

    Keywords

    Workers’ Remittances; Migration; Pakistan;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:50:y:2011:i:3:p:189-208. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal). General contact details of provider: http://edirc.repec.org/data/pideipk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.