[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/hic/wpaper/236.html
   My bibliography  Save this paper

Extending a Lifeline or Cutting Losses? Conflict and Household Receipts of Remittances in Pakistan

Author

Listed:
  • Yashodhan Ghorpade

    (World Bank)

Abstract
I examine the causal effects of long-term exposure to conflict, measured at the micro level, on households’ receipt of remittances. Using IV estimation to overcome the endogeneity of conflict exposure and remittance receipts, and controlling for a range of confounding factors, I find that, contrary to the literature from country-level case studies, long-term exposure to conflict reduces households’ likelihood of receiving any remittances at all, as well as the average amounts of remittances received. The negative effects of long-term conflict exposure on remittances are also stronger for groups that are more likely to use such receipts to invest, rather than for consumption, which suggests that remittances are lower in conflict-affected areas due to the higher risk and insecurity of investments. While existing studies treat conflict only as a source of hardship that creates the need for remittances motivated by altruism, I find that conflict may discourage investment-focused remittances by dampening the investment climate and compelling a revaluation of remitters’ continuing and long-term financial interests in their violence-affected origins, alluding to a significant micro-macro gap in the literature on conflict and remittances.

Suggested Citation

  • 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.
  • Handle: RePEc:hic:wpaper:236
    as

    Download full text from publisher

    File URL: http://www.hicn.org/wp-content/uploads/2012/06/HiCN-WP-236-2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tatiana Nenova & Cecile Thioro Niang & Anjum Ahmad, 2009. "Bringing Finance to Pakistan's Poor : Access to Finance for Small Enterprises and the Underserved," World Bank Publications - Books, The World Bank Group, number 13803.
    2. Ghorpade, Yashodhan, 2016. "Essays on household behaviour at the intersection of conflict and natural disasters: the 2010 floods in Pakistan," Economics PhD Theses 0516, Department of Economics, University of Sussex Business School.
    3. repec:pri:cheawb:case_paxson_orphansafrica is not listed on IDEAS
    4. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    5. El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
    6. repec:pri:rpdevs:case_paxson_orphansafrica is not listed on IDEAS
    7. Anna Lindley, 2007. "Remittances in Fragile Settings: a Somali Case Study," HiCN Working Papers 27, Households in Conflict Network.
    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. 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.
    10. Schutte, Stefan, 2004. "Urban Vulnerability In Afghanistan: Case Studies From Three Cities," Case Studies 14632, Afghanistan Research and Evaluation Unit.
    11. 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.
    12. repec:pri:cheawb:case_paxson_orphansafrica.pdf is not listed on IDEAS
    13. 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.
    14. Anne Case & Christina Paxson & Joseph Ableidinger, 2004. "Orphans in Africa: parental death, poverty, and school enrollment," Demography, Springer;Population Association of America (PAA), vol. 41(3), pages 483-508, August.
    15. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, September.
    16. Tigran A. Melkonyan & David A. Grigorian, 2011. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and a Motive to Receive Inheritance," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1026-1044, March.
    17. Gabi G. Afram, 2012. "The Remittance Market in India : Opportunities, Challenges, and Policy Options," World Bank Publications - Books, The World Bank Group, number 2228.
    18. Catalina Amuedo‐Dorantes & Susan Pozo, 2006. "Remittance Receipt and Business Ownership in the Dominican Republic," The World Economy, Wiley Blackwell, vol. 29(7), pages 939-956, July.
    19. 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.
    20. repec:pri:rpdevs:case_paxson_orphansafrica.pdf is not listed on IDEAS
    21. Jørgen Carling & Marta Bivand Erdal & Cindy Horst, 2012. "How does Conflict in Migrants’ Country of Origin Affect Remittance-Sending? Financial Priorities and Transnational Obligations Among Somalis and Pakistanis in Norway," International Migration Review, Wiley Blackwell, vol. 46(2), pages 283-309, June.
    22. Tigran A. Melkonyan & Mr. David A. Grigorian, 2008. "Microeconomic Implications of Remittances in an Overlapping Generations Model with Altruism and Self-Interest," IMF Working Papers 2008/019, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    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. Ghorpade, Yashodhan, 2017. "Extending a Lifeline or Cutting Losses? The Effects of Conflict on Household Receipts of Remittances in Pakistan," World Development, Elsevier, vol. 99(C), pages 230-252.
    2. 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.
    3. Dorsaf Srdid & Wafa Ghardallou, 2019. "Remittances and Disaggregated Country Risk Ratings in Tunisia: An ARDL Approach," Working Papers 1326, Economic Research Forum, revised 21 Aug 2019.
    4. Aparicio Fenoll, Ainhoa & Kuehn, Zoë, 2018. "Immigrant networks and remittances: Cheaper together?," World Development, Elsevier, vol. 111(C), pages 225-245.
    5. 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.
    6. Kim, Jounghyeon, 2023. "Does population aging matter for remittances in developing countries?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1038-1056.
    7. Patrick GUILLAUMONT & Maëlan LE GOFF, 2010. "Aid and remittances: their stabilizing impact compared," Working Papers P12, FERDI.
    8. Garcia, Pablo M & Rodriguez-Montemayor, Eduardo, 2010. "A primer of international migration: The Latin American experience and a proposal for a research agenda," MPRA Paper 24147, University Library of Munich, Germany.
    9. Dorothee Crayen & Christa Hainz & Christiane St�h de Mart�nez, 2013. "Remittances, Banking Status and the Usage of Insurance Schemes," Journal of Development Studies, Taylor & Francis Journals, vol. 49(6), pages 861-875, June.
    10. de Brauw, Alan & Mueller, Valerie & Woldehanna, Tassew, 2011. "Insurance motives to remit: Evidence from a matched sample of Ethiopian internal migrants," IFPRI discussion papers 1090, International Food Policy Research Institute (IFPRI).
    11. 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.
    12. 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.
    13. repec:dau:papers:123456789/5559 is not listed on IDEAS
    14. Yoshito Takasaki, 2013. "Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor," Tsukuba Economics Working Papers 2013-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    15. 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.
    16. Mduduzi Biyase & Fiona Tregenna, 2016. "Determinants of remittances in South Africa," SALDRU Working Papers 176, Southern Africa Labour and Development Research Unit, University of Cape Town.
    17. Yashodhan Ghorpade, 2020. "Calamity, Conflict, and Cash Transfers: How Violence Affects Access to Aid in Pakistan," Economic Development and Cultural Change, University of Chicago Press, vol. 68(4), pages 1131-1184.
    18. 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.
    19. 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.
    20. Jounghyeon Kim, 2019. "The Impact of Remittances on Exchange Rate and Money Supply: Does “Openness” Matter in Developing Countries?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(15), pages 3682-3707, December.
    21. Valerie Mueller & Chiara Kovarik & Kathryn Sproule & Agnes Quisumbing, 2015. "Migration, Gender, and Farming Systems in Asia: Evidence, Data, and Knowledge Gaps," Working Papers id:7478, eSocialSciences.

    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:hic:wpaper:236. 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: Tilman Brück or the person in charge or the person in charge or the person in charge (email available below). General contact details of provider: https://hicn.org/ .

    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.