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Remittances and Asset Accumulation of Household in Pakistan

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  • Fatima, Kiran
  • Qayyum, Abdul

Abstract

Assets accumulated by household is important topic, it is investment by household to maximise their utility for present time and for future. It is stock investment which help the household to use these assets in tough time. How income receive to household from three sources i.e. labour income, internal remittances, and external remittances effect assets accumulation of household is the topic for investigation in this paper. This paper analyses the effect of remittances on aggregate household’s assets of Pakistan by using Probit model estimated through maximum likelihood method. Finding of this paper shows that external remittances positively and significantly affect assets accumulation of aggregate household of Pakistan. Results of the paper are closest to theoretical idea that remittances have significantly affect the asset accumulation of household.

Suggested Citation

  • Fatima, Kiran & Qayyum, Abdul, 2016. "Remittances and Asset Accumulation of Household in Pakistan," MPRA Paper 72945, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:72945
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Assets Accumulation; Utility; Internal Remittances; External Remittances; Households; Pakistan; Probit Model;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D10 - Microeconomics - - Household Behavior - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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