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Socio-economics impact of overseas worker remittances on the recipient households in District Swabi, Pakistan

Khan, Munir (2010) Socio-economics impact of overseas worker remittances on the recipient households in District Swabi, Pakistan. PhD thesis, NWFP Agriculture University, Peshawar .

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Abstract

The main objective of this study was to analyze the impact of foreign remittances on the socio-economic development of the District Swabi, NWFP, Pakistan. For this purpose eleven villages were selected where 360 respondents were interviewed in the year 2008. Several important conclusions emerge from this study in the context of: determinants of emigration, the foreign earnings, the mode of utilization and socio-economic impact on recipients in Pakistan. These conclusions are summed up below. The study reveals that both “Pull” and ‘Push’ factors have propelled the emigration process but the “Pull” factors are more dominant. The study also distinctly substantiates the “Age Selectivity” character of emigration stream; 63% of the emigrants under study belong to the 21-30 years age group. The study reveals that the literacy level of the emigrants’ households positively impacted the incidence of emigration. Regression results of the study also clearly establish a positive and significant correlation between the level of ‘formal education’ and ‘formal training’ of emigrants with their income level abroad. These findings discount the commonplace views on this subject in the study universe and thus, should, further strengthen the urge, among the area’s people and also elsewhere, to go for formal education and formal training, more and more. An unexpected finding of the study is the negative and insignificant correlation between emigrants’ non-formal skills and their income level abroad. The emigrants’ remittances have substantially improved their left behind households’ income level, which compares very favorably with income of the in-country workers; being three times higher than the latter. The emigrants’ households were, generally speaking, found to be making a rational allocation of their enhanced income over consumption and productive uses. Some 14% households acquired agricultural land which significantly increased their holdings (22%) over the pre-emigration period; 12% purchased plots of land for residential/commercial construction; 32% invested in livestock that raised their livestock holdings by 83%; 49% bought vehicles, mostly for both personal and commercial use; and 79% constructed or improved their residences, thus creating an asset of growing value by the current trend. Expenditure on health and education is universally regarded a productive outlay, and the emigrants households prominently excel in this respect. These items claimed 11% and 14% respectively of their total current expenditure. The outcomes are manifested in improvement in health situation as well as literacy and education level of the population under study. Both men and women have had their share in this respect. The growing popularity of education among women is, especially noteworthy and is a break away from the social rigidity of the past. Thus, emigration and the resulting inflow of remittances from abroad have set in the much welcome process of socio-economic change and emigration should accordingly be encouraged and facilitated by providing appropriate financial, legal, and administrative assistance and encouragement to the existing and the intending emigrants.

Item Type:Thesis (PhD)
Uncontrolled Keywords:Socio-Economic, Impact, Overseas, Workers, Remittances, Recipient, Households, Swabi, Pakistan, correlation, formal, education, training
Subjects:Social Sciences(g) > Economics (g5)
ID Code:3984
Deposited By:Mr. Javed Memon
Deposited On:21 Jul 2010 13:15
Last Modified:24 Feb 2011 13:14

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