Analysing the Effect of Remittances on Rural Household in Pakistan

Abstract. Rural households are more vulnerable to uncertain situations, for these uncertainty they diversify not only their resources but their income. Income receive to households is in three formats i.e. labour income, internal remittance income and external remittance income. Rural households invest for uncertain situation in future, rural households invest in assets in good time and this investment help them to tackle future uncertainty. Current paper investigates by using the data of PSLM that how remittances effect accumulation of assets, because remittances are utilise as transitory income. Results also explains that external remittances significantly affect the assets accumulation of rural households.Keywords. Assets accumulation, Rural Areas, Probit model, PSLM.JEL. C25, D10, D61, F22, F24, R20