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Great Expectations? Remittances and Asset Accumulation in Pakistan

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  • Junaid Ahmed
  • Mazhar Mughal
  • Stephan Klasen
Abstract
This study examines asset accumulation patterns of the recipients of foreign and domestic remittances. Employing a number of matching techniques, we analyse stocks of consumer, productive, housing and financial assets among migrants' stay†behind households in Pakistan. We find that asset accumulation among remittance†receiving households depends upon the nature and magnitude of remittances, the economic situation, and the geographical location of the recipient households. Foreign remittances lead to a substantial increase in household assets, while no significant change results from domestic remittances. We conclude that foreign remittances are considered as mainly transitory income and are used to generate precautionary savings in cash and kind. Copyright © 2016 John Wiley & Sons, Ltd.

Suggested Citation

  • Junaid Ahmed & Mazhar Mughal & Stephan Klasen, 2018. "Great Expectations? Remittances and Asset Accumulation in Pakistan," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(3), pages 507-532, April.
    • Handle: RePEc:wly:jintdv:v:30:y:2018:i:3:p:507-532
    DOI: 10.1002/jid.3202
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    4. Boburmirzo Ibrokhimov & Rashid Javed & Mazhar Mughal, 2023. "Migrants remittances and fertility in the Post-Soviet states," Post-Communist Economies, Taylor & Francis Journals, vol. 35(6), pages 574-596, August.
    5. Ahmed Raza Cheema & Ian Coxhead, 2022. "Does Dowry Drive Labor Export? Evidence from Pakistan," The Developing Economies, Institute of Developing Economies, vol. 60(4), pages 173-205, December.
    6. Ubaid Ali & Mazhar Mughal & Lionel de Boisdeffre, 2023. "Migrant remittances, agriculture investment and cropping patterns," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 899-920, September.
    7. Junaid Ahmed & Mazhar Mughal, 2019. "Cost Of Remitting To Pakistan Across Major Corridors," PIDE Research Briefs 2019:04, Pakistan Institute of Development Economics.
    8. Ayaz Ahmed & Nasir Iqbal & Ghulam Mustafa, 2020. "Measuring the Impact of Remittances on Housing Demand: Evidence from Large Cities in Pakistan," PIDE-Working Papers 2020:10, Pakistan Institute of Development Economics.

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    More about this item

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • I2 - Health, Education, and Welfare - - Education
    • 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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