Remittances and Household Welfare: A Case Study of Pakistan
Ahmed, Vaqar; Sugiyarto, Guntur; Jha, Shikha | February 2010
Abstract
"This paper examines the impact of remittances on economy and household welfare in Pakistan by using a general equilibrium framework and microeconometric analysis. The first approach is to highlight the macroeconomic and sectoral effects of a reduction in remittances, while the second is to show how remittances decrease the probability of being poor and affect the household consumption expenditure and hence poverty. The findings suggest that reduction in remittances will reduce gross domestic product, investment, and household consumption, which in turn will increase poverty. On the other hand, the probability of households becoming poor decreases by 12.7% if they receive remittances. The poverty headcount ratio and Gini coefficient decline by 7.8% and 4.8%, respectively, for household-receiving remittances. Given the important role of remittance, the key challenge for the government is to provide incentives to attract more remittances sent through formal channels and ensure their productive use. "
Citation
Ahmed, Vaqar; Sugiyarto, Guntur; Jha, Shikha. 2010. Remittances and Household Welfare: A Case Study of Pakistan. © Asian Development Bank. http://hdl.handle.net/11540/1536.ISSN
1655-5252
Keywords
Economic Welfare
Economic Incentives
Social condition
Economic dependence
Economic assistance
Welfare economics
Welfare state
Poor
Food relief
Poverty
Domestic economic assistance
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Citable URI
http://hdl.handle.net/11540/1536Metadata
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