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Remittances, inequality and poverty in Pakistan: macro and microeconomic Evidence

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  • Mazhar Yasin MUGHAL
  • Amar Iqbal ANWAR

Abstract

This paper studies the impact of remittance incidence on inequality and poverty in Pakistan. Using the 2005-06 and 2007-08 Household Integrated Economic Survey data, we find that remittances substantially lower the poverty headcount, as well as the depth and severity of poverty. Foreign remittances have also a beneficial effect on economic inequality in Pakistan. The contribution of foreign remittances in poverty alleviation and inequality reduction is much stronger than that of internal remittances. Time series analysis for the period 1979 – 2007 suggests that among the three main remittance-sending regions, remittances from North America have the strongest equalizing effect in Pakistan.

Suggested Citation

  • 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.
  • Handle: RePEc:tac:wpaper:2012-2013_2
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    File URL: http://gtl.univ-pau.fr/travaux/840F_115579_2012_2013_2DocWcattRemittances_Inequality_Poverty_in_Pakistan_Macro_MicroEco_MMughal_AIAnwar.pdf
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    References listed on IDEAS

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    1. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 383-415.
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    Citations

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    Cited by:

    1. Farid MAKHLOUF & Adil NAAMANE, 2013. "The Impact of Remittances on Economic Growth: The Evidence from Morocco," Working Papers 2013-2014_3, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Sep 2013.
    2. Mazhar Y. Mughal & Junaid Ahmed, 2014. "Remittances and Business Cycles: Comparison of South Asian Countries," International Economic Journal, Taylor & Francis Journals, vol. 28(4), pages 513-541, December.
    3. 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.
    4. repec:ebl:ecbull:eb-16-00558 is not listed on IDEAS
    5. Junaid Ahmed, 2012. "Cyclical Properties of Migrant's Remittances to Pakistan: What the data tell us," Economics Bulletin, AccessEcon, vol. 32(4), pages 3266-3278.

    More about this item

    Keywords

    Remittances; Inequality; Poverty; Pakistan; South Asia;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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