Family influence on utilization of remittances: A case study of a village in the North-West Frontier Province of Pakistan
Idris, Mohammad
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Permalink
https://hdl.handle.net/2142/18942
Description
Title
Family influence on utilization of remittances: A case study of a village in the North-West Frontier Province of Pakistan
Author(s)
Idris, Mohammad
Issue Date
1991
Doctoral Committee Chair(s)
Sofranko, Andrew J.
Department of Study
Sociology
Discipline
Sociology
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Finance
Sociology, Individual and Family Studies
Language
eng
Abstract
This study of remittance from the Middle East migrants to a town in Pakistan presents a model explaining the use of remittances for business, agriculture, basic family needs, and social ceremonies/luxury items. The focus was on the influence of four dimensions of extended family organization: exchange of financial support; authority pattern; family size; and familism. Results demonstrated that the exchange of financial support positively affects all four uses of remittances. Family authority pattern was important only in the model examining the use of remittances for agriculture. Family size did not affect use of remittances for business and agriculture, but was important in explaining remittance use for basic family needs and for social ceremonies/luxury items. Familism had no effect on the use of remittances for business, agriculture, and basic family needs, but was important in explaining the use of remittances for social ceremonies and luxury items.
Introduction of possible confounding variables revealed only prior family business experience and household head's awareness of business opportunities were important in the model explaining use of remittances for business. In the model for agriculture, education of males in a household, their age, the household head's age, and his/her attitude toward business were found to have confounding effects. And in the basic needs model only the education of males in a household was found to be an important confounder. Four confounders were important in the social ceremonies/luxury items model, including household income, number of males in a household, household head's employment status, and the head's attitude toward business. Variables measuring quantity of remittances and family debt were used as possible intervening factors. They were important in the basic needs and social ceremonies/luxury items models, but not in the other two.
Data shows that the extended family may not represent a barrier to investment, as suggested by the proponents of modernization theory. Different dimensions of extended family may actually facilitate the use of money for investment. This research revealed the importance of social, cultural, and economic factors underlying the use of remittances. Policy makers in Pakistan should incorporate them in policy governing the use of remittances for productive investment.
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