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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 17, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcnddp:17
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    References listed on IDEAS

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    1. Adams, Richard H, Jr, 1991. "The Economic Uses and Impact of International Remittances in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 39(4), pages 695-722, July.
    2. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 223-244, April.
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    15. Adams, Richard H. Jr. & He, Jane J., 1995. "Sources of income inequality and poverty in rural Pakistan:," Research reports 102, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Johann Kirsten & Marie Kirsten, 2000. "The effect of rural inequality on fertility and migration: A literature review," Development Southern Africa, Taylor & Francis Journals, vol. 17(4), pages 583-602.
    2. Meinzen-Dick, Ruth Suseela & Sullins, Martha, 1994. "Water markets in Pakistan: participation and productivity," EPTD discussion papers 4, International Food Policy Research Institute (IFPRI).
    3. Estudillo, Jonna P. & Quisumbing, Agnes R. & Otsuka, Keijiro, 2001. "Income distribution in rice-growing villages during the post-Green Revolution periods: the Philippine case, 1985 and 1998," Agricultural Economics, Blackwell, vol. 25(1), pages 71-84, June.
    4. Randazzo, Teresa & Piracha, Matloob, 2019. "Remittances and household expenditure behaviour: Evidence from Senegal∗," Economic Modelling, Elsevier, vol. 79(C), pages 141-153.
    5. Zhongwei Xing, 2018. "Development Impacts of Remittances in Agricultural Households: Fiji Experience," Remittances Review, Remittances Review, vol. 3(1), pages 19-49, May.

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