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Remittances, Income Distribution, and Rural Asset Accumulation

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  • Adams, Richard H., Jr.

Abstract

This paper examines the direct, first-rounds impact of two types of remittances—internal and external remittances—on income distribution and asset accumulation in rural Pakistan. Using income decomposition techniques on a three-year panel household data set, the paper finds that internal remittances have a positive effect on equity and that external remittances have a negative effect. The study also uses an asset-accumulation model to pinpoint the effect of remittances on five types of rural assets: irrigated land owned, rainfed land owned, livestock assets, agricultural capital, and nonfarm assets. The results show that remittances do have an effect on rural asset accumulation. While external remittances have a positive and significant effect on the accumulation of land, internal remittances have a positive and significant effect on the accumulation of agricultural capital.

Suggested Citation

  • Adams, Richard H., Jr., 1996. "Remittances, Income Distribution, and Rural Asset Accumulation," FCND Discussion Papers 97305, CGIAR, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:ags:fcnddp:97305
    DOI: 10.22004/ag.econ.97305
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    References listed on IDEAS

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