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DEVELOPMENT ECONOMICS

Effect of internal and external remittances on expenditure inequality in Pakistan

ORCID Icon & , Dr.
Article: 2178121 | Received 19 Jun 2022, Accepted 05 Feb 2023, Published online: 05 Mar 2023

Figures & data

Figure 1. (a) GDP per capita and income inequality. (b) Remittances and income inequality.

Data source: WDI and SWIID
Figure 1. (a) GDP per capita and income inequality. (b) Remittances and income inequality.

Table 1. Definition of the variables used in analysis

Table 2. Descriptive analysis of variables

Figure 2. (a) Share of external and internal remittances per capita in total household income per capita. (b). Income and expenditure per capita across the household group. (c). Income, expenditure, remittances and non-remittance income in external remittances receiving household. (d). Income, expenditure, remittances, and non-remittance income in internal remittances receiving household.

Figure 2. (a) Share of external and internal remittances per capita in total household income per capita. (b). Income and expenditure per capita across the household group. (c). Income, expenditure, remittances and non-remittance income in external remittances receiving household. (d). Income, expenditure, remittances, and non-remittance income in internal remittances receiving household.

Figure 3. (a).Spatial pattern of expenditure per capita. (b). Spatial pattern of external remittances. (c). Spatial pattern of internal remittances. (d). Spatial pattern of internal vs external remittances.

Source: Authors’ own calculation based on PSLM-HIES2018–2019 data
Figure 3. (a).Spatial pattern of expenditure per capita. (b). Spatial pattern of external remittances. (c). Spatial pattern of internal remittances. (d). Spatial pattern of internal vs external remittances.

Table 3. Estimates of quantile and OLS regression

Figure 4. Effect of internal and external remittance receipt on expenditure by quantiles.

Figure 4. Effect of internal and external remittance receipt on expenditure by quantiles.

Table 4. Decomposition of inequality in expenditure by using Blinder-Oaxaca decomposition

Table 5. Blinder-Oaxaca Decomposition of differences in mean expenditure per capita

Table 6. Decomposition of unconditional quantile functions

Figure 5. (a)Treatment and endowment effect of external remittance vs no remittance receiving household. (b). Treatment and endowment effect of internal remittance vs no remittance receiving household. (c). Treatment and endowment effect of external remittance vs internal remittance receiving household.

Figure 5. (a)Treatment and endowment effect of external remittance vs no remittance receiving household. (b). Treatment and endowment effect of internal remittance vs no remittance receiving household. (c). Treatment and endowment effect of external remittance vs internal remittance receiving household.

Figure A1. Quantile plot of log expenditure per capita.

Figure A1. Quantile plot of log expenditure per capita.

Figure A2. Distribution of expenditure per capita.

Figure A2. Distribution of expenditure per capita.

Figure A3. Quantile plot of Expenditure per capita

Figure A3. Quantile plot of Expenditure per capita

Figure A4. Estimates of quantile regression comparing with the estimates of OLS.

Figure A4. Estimates of quantile regression comparing with the estimates of OLS.

Table A1. Results of quantile regression