The Impact of Remittances on Fertility Rate: Evidence from Pakistan

Abstract

In this paper we examine the association between workers’ remittances and fertility rate of the home country. The author categorize two key paths by which transfer of remittances influence the fertility. First, migrants tend to adopt the notions, cultures and values which are exist in the host country and later transmit to their families. Possibly, those migrants with more close to their families so they will send more money to their home. Consequently, social norms can be taken as a proxy of a remittances (containing preferences of fertility) which is transferred from the migrant to the family. In addition to, earlier literature have indicated that remittances is frequently used for educational expenses and health services. Eventually, these factors make the cause to reduce the fertility rates. In the paper we use time series data of Pakistan for the period of 1975-2015. We use ordinary least square technique of estimation and find a negative association between remittances and fertility rate. Moreover, we find also some evidence about transmit of social norms to recipient country. This study also affirms that numerous socio-economic components namely; average host fertility rate, female literacy rate, percent of population in rural area, GDP per capita and female labour force participation affect fertility rates.

JEL Code Classification: F22, F24, J13, C33