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Remittances in Pakistan; Why have they gone up, and why Aren't they coming down?

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  • Yan M Sun
  • Udo Kock

Abstract

The flow of workers' remittances to Pakistan has more than quadrupled in the last eight years and it shows no sign of slowing down, despite the economic downturn in the Gulf Cooperation Council (GCC) and other important host countries for Pakistani workers. This paper analyses the forces that have driven remittance flows to Pakistan in recent years. The main conclusions are: (i) the growth in the inflow of workers' remittances to Pakistan is in large part due to an increase in worker migration; (ii) higher skill levels of migrating workers have helped to boost remittances; (iii) other imporant determinants of remittances to Pakistan are agriculture output and the relative yield on investments in the host and home countries.

Suggested Citation

  • Yan M Sun & Udo Kock, 2011. "Remittances in Pakistan; Why have they gone up, and why Aren't they coming down?," IMF Working Papers 11/200, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:11/200
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    References listed on IDEAS

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    1. Casey Mulligan & Tomas Philipson, "undated". "Merit Motives and Government Intervention: Public Finance in Reverse," University of Chicago - Population Research Center 2000-03, Chicago - Population Research Center.
    2. Jeffrey Frankel, 2011. "Are Bilateral Remittances Countercyclical?," Open Economies Review, Springer, vol. 22(1), pages 1-16, February.
    3. 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.
    4. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," World Bank Economic Review, World Bank Group, vol. 21(2), pages 219-248, May.
    5. 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.
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    Cited by:

    1. Jawad, Muhammad & Qayyum, Abdul, 2015. "Modeling the Impact of Policy Environment on Inflows of Worker’s Remittances in Pakistan: A Multivariate Analysis," MPRA Paper 62019, University Library of Munich, Germany, revised 2015.
    2. 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.
    3. 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.
    4. Kumar, Ronald/R, 2011. "Role of Trade, Aid, Remittances and Financial Development in Pakistan," MPRA Paper 38871, University Library of Munich, Germany.
    5. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2013. "Blessing or curse: The stabilizing role of remittances, foreign aid and FDI to Pakistan," Center for European, Governance and Economic Development Research Discussion Papers 153, University of Goettingen, Department of Economics.
    6. Rashid Hussain & Ghulam Abbas Anjum, 2014. "Worker’s Remittances and GDP Growth in Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 4(2), pages 376-381.
    7. Yashodhan Ghorpade, 2016. "Extending a Lifeline or Cutting Losses? Conflict and Household Receipts of Remittances in Pakistan," HiCN Working Papers 236, Households in Conflict Network.
    8. Michael Clemens and David McKenzie, 2014. "Why Don't Remittances Appear to Affect Growth? - Working Paper 366," Working Papers 366, Center for Global Development.
    9. Ahmed, Junaid & Martínez-Zarzoso, Inmaculada, 2015. "Do transfer costs matter for foreign remittances? A gravity model approach," Economics Discussion Papers 2015-12, Kiel Institute for the World Economy (IfW).
    10. repec:rfh:bbejor:v:6:y:2017:i:2:p:74-91 is not listed on IDEAS
    11. Rashid Amjad & G. M. Arif & M. Irfan, 2012. "Preliminary Study: Explaining the Ten-fold Increase in Remittances to Pakistan 2001-2012," PIDE-Working Papers 2012:86, Pakistan Institute of Development Economics.
    12. Kumar, Ronald R., 2011. "Role of Financial and Technology Inclusion, Remittances and Exports vis-à-vis growth: A study of Nepal," MPRA Paper 38850, University Library of Munich, Germany, revised 17 May 2012.
    13. Clemens, Michael A. & McKenzie, David, 2014. "Why don't remittances appear to affect growth ?," Policy Research Working Paper Series 6856, The World Bank.

    More about this item

    Keywords

    Migration; Pakistan; Workers remittances; remittances; remittance; worker migration; labor migration; International Factor Movements and International Business: General;

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