Munich Personal RePEc Archive

Remittances and Asset Accumulation of Household in Pakistan

Fatima, Kiran and Qayyum, Abdul (2016): Remittances and Asset Accumulation of Household in Pakistan.

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Assets accumulated by household is important topic, it is investment by household to maximise their utility for present time and for future. It is stock investment which help the household to use these assets in tough time. How income receive to household from three sources i.e. labour income, internal remittances, and external remittances effect assets accumulation of household is the topic for investigation in this paper. This paper analyses the effect of remittances on aggregate household’s assets of Pakistan by using Probit model estimated through maximum likelihood method. Finding of this paper shows that external remittances positively and significantly affect assets accumulation of aggregate household of Pakistan. Results of the paper are closest to theoretical idea that remittances have significantly affect the asset accumulation of household.

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