How do consumption patterns of foreign and domestic remittance recipients and non recipients compare? Evidence from Pakistan

Junaid Ahmed and Mazhar Mughal
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Junaid Ahmed: Georg-August-University Göttingen

No 160, Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG

Abstract: This study analyzes the differential consumption patterns of foreign and domestic remittances to migrant households in Pakistan using Working-Leser framework and propensity score matching. Findings point to differing consumption behaviour across foreign and domestic recipients. Foreign remittances are considered as fungible and spent in the same way as other sources of income. In contrast, domestic remittances are considered a less permanent source of income and are spent more on improving the households’ human capital.

Keywords: Expenditure; consumption patterns; foreign remittances; domestic remittances; Pakistan (search for similar items in EconPapers)
JEL-codes: O12 O15 O53 (search for similar items in EconPapers)
Date: 2014-06-30
New Economics Papers: this item is included in nep-dev and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:got:gotcrc:160

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