Impact of Remittances on Consumption and Investment (Case Study of Tehsil Sargodha, Punjab, Pakistan)

Abstract

This paper investigates the impact of remittances (internal and external) on consumption and investment behavior of the households. The literature on the impact of remittances on consumption and investment, however, is exceptional, in context of Pakistan. To examine the impact of remittances, primary data was collected from the field survey of four main villages of Tehsil Sargodha (Punjab) Pakistan. The methodology used for the study, is regression model. The results show that remittances has positively related with consumption and investment. Furthermore, the study found the household behavior regarding consumption and investment is positive.