IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2011-200.html
   My bibliography  Save this paper

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

Author

Listed:
  • Ms. 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

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

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=25172
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Connel Fullenkamp & Mr. Thomas F. Cosimano & Michael T. Gapen & Mr. Ralph Chami & Mr. Peter J Montiel & Mr. Adolfo Barajas, 2008. "Macroeconomic Consequences of Remittances," IMF Occasional Papers 2008/001, International Monetary Fund.
    2. Jeffrey Frankel, 2011. "Are Bilateral Remittances Countercyclical?," Open Economies Review, Springer, vol. 22(1), pages 1-16, February.
    3. 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.
    4. Johnson, George E & Whitelaw, W E, 1974. "Urban-Rural Income Transfers in Kenya: An Estimated-Remittances Function," Economic Development and Cultural Change, University of Chicago Press, vol. 22(3), pages 473-479, April.
    5. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
    6. 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.
    7. Lucas, Robert E B & Stark, Oded, 1985. "Motivations to Remit: Evidence from Botswana," Journal of Political Economy, University of Chicago Press, vol. 93(5), pages 901-918, October.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jawad, Muhammad & Qayyum, Abdul, 2015. "Modelling the Impact of Policy Environment on Inflows of Worker’s Remittances in Pakistan: A Multivariate Analysis," MPRA Paper 85497, University Library of Munich, Germany.
    2. Mazhar Mughal & Farid Makhlouf, 2013. "Labour effects of foreign and domestic remittances -- evidence from Pakistan," International Review of Applied Economics, Taylor & Francis Journals, vol. 27(6), pages 798-821, November.
    3. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2014. "What drives bilateral remittances to Pakistan? A gravity model approach," University of Göttingen Working Papers in Economics 209, University of Goettingen, Department of Economics.
    4. Faridoon Khan & Amena Urooj & Farman Ullah Khan, 2020. "Factors Affecting Economic Growth: A Comparative Analysis of Democratic and Non-Democratic Eras of Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 2(2), pages 61-71, December.
    5. Amar Iqbal Anwar & Mazhar Mughal, 2012. "Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence [Centre d'Analyse Théorique et de Traitement des données économiques REMITTANCES, INEQUALITY AND POVERTY IN PAKISTA," Working Papers hal-01885153, HAL.
    6. Amar Iqbal Anwar & Mazhar Mughal, 2012. "Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence [Centre d'Analyse Théorique et de Traitement des données économiques REMITTANCES, INEQUALITY AND POVERTY IN PAKISTA," Working papers of CATT hal-01885153, HAL.
    7. Kumar, Ronald/R, 2011. "Role of Trade, Aid, Remittances and Financial Development in Pakistan," MPRA Paper 38871, University Library of Munich, Germany.
    8. Ahmed, Junaid & Martinez-Zarzoso, Inmaculada, 2013. "Blessing or curse: The stabilizing role of remittances, foreign aid and FDI to Pakistan," University of Göttingen Working Papers in Economics 153, University of Goettingen, Department of Economics.
    9. 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.
    10. Sidra Feroz & Bushra Yasmin, 2021. "Terrorism and Brain Drain in Pakistan: Is There a Connection?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 22(1), pages 73-87, March.
    11. Chan Bibi & Amjad Ali, 2021. "Do Remittances Impact Human Development in Developing Countries? A Panel Analysis of Selected Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 7(2), pages 27-42, June.
    12. 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.
    13. Michael Clemens and David McKenzie, 2014. "Why Don't Remittances Appear to Affect Growth? - Working Paper 366," Working Papers 366, Center for Global Development.
    14. Amjad, Rashid & Siddiqui, Rizwana, 2014. "Economic Impact of Remittances: Does it matter how they are sent?," MPRA Paper 90108, University Library of Munich, Germany, revised 2017.
    15. 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 Kiel).
    16. Muhammad Zahid Naeem & Shama Arzu, 2017. "The Role of Remittances on Human Development: Evidence from Developing Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 6(2), pages 74-91, June.
    17. Imen Mohamed Sghaier, 2021. "Remittances and Economic Growth in MENA Countries: The Role of Financial Development," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 43-59, March.
    18. 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.
    19. Michael A. Clemens & David McKenzie, 2018. "Why Don't Remittances Appear to Affect Growth?," Economic Journal, Royal Economic Society, vol. 128(612), pages 179-209, July.
    20. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/5559 is not listed on IDEAS
    2. Timo Baas & Silvia Maja Melzer, 2012. "The Macroeconomic Impact of Remittances: A sending country perspective," Norface Discussion Paper Series 2012021, Norface Research Programme on Migration, Department of Economics, University College London.
    3. Okayo Alphonsine COULIBALY, 2016. "Les Motivations Microéconomiques Des Transferts De Fonds Au Burkina Faso : La Culture Est-Elle Déterminante ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 187-208.
    4. Bettin, Giulia & Lucchetti, Riccardo & Zazzaro, Alberto, 2012. "Endogeneity and sample selection in a model for remittances," Journal of Development Economics, Elsevier, vol. 99(2), pages 370-384.
    5. Giulia Bettin & Riccardo Lucchetti & Claudia Pigini, 2016. "State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany," Mo.Fi.R. Working Papers 127, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    6. Giulia Bettin & Riccardo Lucchetti, 2016. "Steady streams and sudden bursts: persistence patterns in remittance decisions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 263-292, January.
    7. Giulia Bettin & Andrea F. Presbitero & Nikola L. Spatafora, 2017. "Remittances and Vulnerability in Developing Countries," The World Bank Economic Review, World Bank, vol. 31(1), pages 1-23.
    8. Supriyo De & Ergys Islamaj & M. Ayhan Kose & S. Reza Yousefi, 2019. "Remittances over the business cycle: Theory and evidence," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 48(3), November.
    9. Giulia Bettin & Riccardo Lucchetti & Alberto Zazzaro, 2009. "Income, consumption and remittances: evidence from immigrants to Australia," Mo.Fi.R. Working Papers 34, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    10. Cooray Arusha & Mallick Debdulal, 2013. "International business cycles and remittance flows," The B.E. Journal of Macroeconomics, De Gruyter, vol. 13(1), pages 1-33, September.
    11. Torero, Máximo & Viceisza, Angelino, 2015. "To remit, or not to remit: that is the question. A remittance field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 221-236.
    12. Matthieu Delpierre & Bertrand Verheyden, 2014. "Remittances, savings and return migration under uncertainty," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-43, December.
    13. Gascón, Patricia & Larramona, Gemma & Salvador, Manuel, 2023. "The impact of digitalisation on remittances. Evidence from El Salvador," Telecommunications Policy, Elsevier, vol. 47(4).
    14. Flore Gubert, 2014. "The discourse and practice of co-development in Europe," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 5, pages 113-151, Edward Elgar Publishing.
    15. Catia Batista & Janis Umblijs, 2016. "Do migrants send remittances as a way of self-insurance?," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 108-130.
    16. Dustmann, Christian & Mestres, Josep, 2010. "Remittances and temporary migration," Journal of Development Economics, Elsevier, vol. 92(1), pages 62-70, May.
    17. Sèna Kimm Gnangnon, 2020. "Trade Openness and Diversification of External Financial Flows for Development: An Empirical Analysis," South Asian Journal of Macroeconomics and Public Finance, , vol. 9(1), pages 22-57, June.
    18. Nicole B. Simpson & Chad Sparber, 2020. "Estimating the Determinants of Remittances Originating from US Households Using CPS Data," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(1), pages 161-189, January.
    19. Kaczmarczyk, Pawel, 2013. "Money for Nothing? Ukrainian Immigrants in Poland and their Remitting Behaviors," IZA Discussion Papers 7666, Institute of Labor Economics (IZA).
    20. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    21. Filiz Garip, 2012. "An Integrated Analysis of Migration and Remittances: Modeling Migration as a Mechanism for Selection," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 31(5), pages 637-663, October.

    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:imf:imfwpa:2011/200. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.