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How do consumption patterns of foreign and domestic remittance recipients and non recipients compare? Evidence from Pakistan

Author

Listed:
  • Junaid Ahmed

    (Georg-August-University Göttingen)

  • Mazhar Mughal

    (Pau Business School)

Abstract

This study analyzes the differential consumption patterns of foreign and domestic remittances to migrant households in Pakistan using Working-Leser framework and propensity score matching. Findings point to differing consumption behaviour across foreign and domestic recipients. Foreign remittances are considered as fungible and spent in the same way as other sources of income. In contrast, domestic remittances are considered a less permanent source of income and are spent more on improving the households’ human capital.

Suggested Citation

  • Junaid Ahmed & Mazhar Mughal, 2014. "How do consumption patterns of foreign and domestic remittance recipients and non recipients compare? Evidence from Pakistan," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 160, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:160
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_160.pdf
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    More about this item

    Keywords

    Expenditure; consumption patterns; foreign remittances; domestic remittances; Pakistan;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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