Remittances, income distribution, and rural asset accumulation

Richard Adams ()

No 17, FCND discussion papers from 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: income distribution; land use; agricultural economics; livestock; Pakistan; Asia; Southern Asia; Oceania (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:fpr:fcnddp:17

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