Analysing the Effect of Remittances on the Household Assets of Pakistan
Assets accumulation is important part of investment of household. Household invest in assets when time is good this increases their utility, and sold them when time is tough. This thesis is aimed to analyse the effect of remittances on assets accumulation of aggregate household of Pakistan, rural household of Pakistan and urban household of Pakistan. By using probit model, estimated through maximum likelihood estimation method. Supervisor:- Dr. Abdul Qayyum Survey data, Pakistan Social and Living Standard measurement Survey (PSLM) 2012-13 is used for estimation. Three models have been modelled for estimation first for aggregate households of Pakistan, second for rural household and third for urban households of Pakistan. Current study concluded that remittances are important in accumulation of assets for household, especially external remittances play major role in accumulating assets. The finding of this thesis shows that external remittances have significant and positive effect on accumulation of assets in aggregate household of Pakistan and on both rural and urban households. Internal remittances shows significance only in urban areas of Pakistan. Labour income is significantly playing positive role in accumulating assets in aggregate household and urban households of Pakistan. Our findings support the general view that remittances have significant effect on investment in accumulation of assets by household. We cannot ignore the importance of remittances inflow for Pakistani household
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