Remittances, Income Distribution, and Rural Asset Accumulation

Adams, Richard H.,

No 97305, FCND Discussion Papers from CGIAR, International Food Policy Research Institute (IFPRI)

Abstract: This paper examines the direct, first-rounds impact of two types of remittances—internal and external remittances—on income distribution and asset accumulation in rural Pakistan. Using income decomposition techniques on a three-year panel household data set, the paper finds that internal remittances have a positive effect on equity and that external remittances have a negative effect. The study also uses an asset-accumulation model to pinpoint the effect of remittances on five types of rural assets: irrigated land owned, rainfed land owned, livestock assets, agricultural capital, and nonfarm assets. The results show that remittances do have an effect on rural asset accumulation. While external remittances have a positive and significant effect on the accumulation of land, internal remittances have a positive and significant effect on the accumulation of agricultural capital.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Pages: 42
Date: 1996-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:fcnddp:97305

DOI: 10.22004/ag.econ.97305

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