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7/29/2019 Migration Research Article
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Indexed and AbstractedISSN 2045-8460 (Online)
African Journal of Social Sciences ISSN 2045-8452 (Print)Volume 1 Number 2 (2011), pp.110- 124 ww.sachajournals.com
INTERNATIONAL MIGRATION, CONSUMPTION AND RE-ACCUMULATION OF
FAMILY ASSETS IN PAKISTAN
Muhammad Wajid TAHIR1, Seemab AZAM1, Majid Ali TAHIR2
1Department of Population Sciences, University of Gujrat, Pakistan2Government Degree College, Narang Mandi, Pakistan
ABSTRACT
The sale of family assets to pay for the cost of migrating abroad is a common phenomenon
among the people of Gujrat in Pakistan. People gather money from different sources to
complete the process of international migration, for this purpose they do not hesitate to sell
their agricultural land, houses, shops, and other personal possessions. The underlying
expectation is that the economic migrant would be able to raise the economic standards of
the closest relatives left behind in Pakistan by way of routine money transfer. The goal of
this study is to evaluate the pattern of asset conveyance and consumption patterns of
international economic migration in rural areas of Gujrat and, to highlight the how the
inward remittance of funds by the economic immigrants are contributing to the re -
accumulation of assets. A survey research method was used by adopting the simple
random sampling technique for selection of respondents (households) from two villages of
Gujrat district. The result shows that all interviewed households had sold different assets
for the purpose of sending economic immigrant abroad.
Keywords: Pakistan, Assets accumulation, International Migration, Economic migration
1. INTRODUCTIONApproximately 5-10 million people crosses international borders every year for
residency in different countries (Haour-Knipe and Davies, 2008). About 40 percent of
global migration occurs from developing to industrialized countries and the rest 60 percent
of global migration happens within developing countries (International Organization for
Migration, 2005). Incidents of human mobility across national boundaries are increasing
for education, re-union of families and desire for socio-economic uplifting. The last factor
is the most prevalent. In 2010, international migrants were estimated 214 million
throughout the world and majority of them migrated for better subsistence (International
Organization for Migration, 2010).
The use of different assets for migration and re-accumulation of assets in higher
quantity or in better quality has become a custom in developing countries (Dani and
Moser, 2008). Assets are defined as a stock of financial, human, natural or social
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resources that can be acquired, developed, improved and transferred across generations
(Moser, 2006). Many people use their assets to meet the expenditures incurred during
migration process. Socio-economic uplifting is the strongest motive behind international
migration among individuals and families. The financial expectations of native families are
also from emigrants. They are confident to attain maximum financial benefits from
emigrants after their settlement in other countries. Therefore, the families do not hesitate to
consume different assets for international migration of their members. Basically, they
invest on emigrants with the hope to re-accumulate consumed asset from their earnings in
the future. Massive familial pressure to re-accumulate assets has also been observed among
emigrants which they have had consumed at the time of international migration.
In the current phase of globalization, international migration is affecting people,
households and communities worldwide (Hamid, 2007). International migration has
profound effects on living, earning, consumption and saving patterns of emigrants and
their native families. At the time of migration of an individual, it is expected that the
migrant will ultimately contribute financial assets to the native family after being settled in
the destination country. For this purpose, the migrants have to do numerous jobs and live
below the poverty line to enhance their income so that they could support their familieswith a consistent amount of money (USASBE, 2011). The postulate of their financial
contribution in family income becomes very strong if a person emigrates by consuming
household assets. He is given a target to earn money keeping in view the maximum socio-
economic strengthening of native families in the future. Hence, most of the emigrants
reside in host countries for specific years and return to their homelands after accumulating
target wealth (Garcia and Montemayor, 2009).
Favorable social environment and better economic conditions attract the people to
move from one place to another. Poverty, economic instability, absence of proper source of
income, lack of resources, political instability and social problems establish grounds for
international migration in developing world (Hamid, 2007). Movement from one place toanother adjoins with different financial implications. Families with stable financial
conditions easily meet the expenditures incurred in the process of migration of its
members. However, people belonging to middle class families use different assets for
going abroad. Poor migrants also obtain loan from relatives, friends and banks for
emigration towards developed countries (Afsar, Yunus and Islam, 2002). Families accepts
financial burden either by consuming assets or taking loan for international migration with
the hope for financial stability and re-accumulation of consumed assets. Therefore, the
majority of emigrants respond back to their families in the form of remittances which are
considered a major source of financial stability (Lucas and Young, 1999). Remittances sent
by emigrants not only contribute in household income of recipient families but also help tore-accumulate previously consumed assets conveniently.
Since early 1990s, family-chain and employment-related migrations have been
observed throughout the world. United States, Europe, Middle East and emerging Asian
economies are destinations of immigrants coming from developing world (OECD, 2006).
Already settled family members in host countries facilitate the adjustment process of new
migrants. They help them to find suitable employment which enables them to send back a
huge portion of their earnings to their families. Inclusion of remittances in recipient
families income alters their money consumption patterns to meet basic needs and savings
(Edward and Mora, 2006). These savings are used to purchase agricultural land, ornaments
and other kind of properties. In many cases, international migrants bring cash with them in
return which is used to start repairing and rebuilding lost assets (Suleri and Savage 2006).
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It has also been observed that remittances are also being used for asset accumulation as
parallel to meet routine expenditures.
1.1 INTERNATIONAL MIGRATION TRENDS IN PAKISTAN
International migration is rife in Pakistan since independence. Economic instability
and lack of employment opportunities are pushing thousands of young people to emigrate
from Pakistan. There are also several other factors which are influencing the decision
regarding emigration. The Government of Pakistan also sends skilled workers in various
professions to developed countries. For this purpose different countries have signed
various kinds of treaties with the Government of Pakistan. Ministry of Labor and Overseas
recruits suitable professionals as desired by respective countries and sends them abroad.
On the other side, many private sector human resource agencies also develop links
with international organizations / agencies for providing them requisite manpower. They
charge heavy amounts from candidates and send them in respective countries through the
prescribed selection procedure. Through personal attempts, many Pakistanis try to reach
and get employment in developed countries by getting an independent visa or by adoptingillegal means. The following figure shows the proportion of Pakistani migrants living in
different parts of the world.
Figure No. 1 Pakistani Migrants in Different Countries
Source: Overseas Pakistan Foundation (2005)
Migrants from Pakistan are engaged in different professions in host countries.
The attainment of employment in host countries also varies with respect to prior
adjustments or post adjustments scenario. The following statistics reveal the profession
wise migration during two consecutive years.
Successful migrants send their earnings back to families in the form of
international remittances. Pakistan receives a significant amount of remittances from
abroad (Suleri and Savage 2006). These remittances play a pivotal role in socio-economic
uplifting of the families in home countries. According to the International Organization for
Migration (2009), Pakistan received $8720 million in one year. Table 2 shows the
proportion of remittances in average per capita income of different income groups in
Pakistan.
Africa
1%
America
21%
Asia/Far
East
2%Australia
/New
Zealand
0%Europe
28%
Middle East48%
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Table1: Profession Wise International Emigrants from Pakistan
Occupational Category 2005 2006
Professional, Technical etc. 3,125 3,914
Administrative and Managerial 2,415 4,197
Clerical etc. 1,192 1,827
Sales 3,969 4,115Service Workers 9,114 11,040
Domestic worker / caregiver 2,314 2,787
Other Service Worker 6,800 8,253
Agriculture culture 7,728 10,780
Total production, Transport, 114,592 147,318
Manufacturing and Factory 26,196 32,897
Construction 76,672 100,131Other production, Transport,Equipment 11,724 14,290
Total 142,135 183,191
SOURCE: Bureau of Emigration and Overseas Employment, Ministry of Labour andOverseas Pakistanis, Government of Pakistan Annual Data on Labour Migration 1971-2006.
Table 2: Remittances and Per Capita Income in Pakistan
IncomeGroups
MeanIncome/capita % of per capita income
from externalRemittance
Lowest 20% 1176 1%
Second 20% 1721 1.70%Third 20% 2200 4.80%
Fourth 20% 2876 7.20%
Highest 20% 5261 13.80%
SOURCE: Adams 1998, survey based on 469 Pakistani Households during 1986-87 and
1990-91
Migrants pay huge amounts for reaching in any of the destination countries either
by public or private sources. Money for international migration is arranged by families
from different means e.g., Personal savings, sale of Agriculture land or any other property
or ornaments, getting loans from banks or relatives. Utilization of these assets for
international migration develops a hope among migrants as well as family members that
more earnings from abroad will not only raise their socio-economic status but also bring
them in a position to re-accumulate similar or better assets after a few years. But to which
extent this desire is fulfilled? It purely depends upon the status of migrants in the
destination country. However, the effect of money received by families from international
migrants helps in accumulating assets in Pakistan (Adams, 1998).
The Gujrat district is famous for international migration in Pakistan. About 0.25
million people are settled abroad from this district (District Health Officer, Gujrat, 2011).
Migrants from this district use different means for international migration. The majority
of the migrants uses their saving assets or obtains a loan from friends / relatives to meet the
expenditures of international migration. This paper illustrates the use of assets forinternational migration in rural areas of Gujrat district. The paper also tells about the types
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of assets used for international migration, the amount of remittances received from
international migrants and the role of remittances in re-accumulation of consumed assets.
This paper also highlights the role of remittances in uplifting of the socioeconomic status
of recipient families. The objectives of the study are:
To highlight the types and cost of assets consumed from international migration inrural areas of Gujrat, Pakistan
To study the role of remittances in re-accumulation of consumed assets forinternational migration in rural areas of Gujrat, Pakistan
To find out the opinion regarding international migration among rural inhabitantsof Gujrat, Pakistan
1.2 REVIEW OF SELECTED LITERATURESChiodi, Jaimovichy and Rojas (2010) studied the link between migration and asset
dynamics in rural households in Mexico. They inferred that many families send theirfamily members abroad with the intention of attaining financial benefit from remittances.
They are highly inclined to utilize the money obtained from remittances for investment in
productive assets. De Haan (2000) found that migrants from India emigrated to diminish
the uncertainty of family income, provide further investment and livelihoods for native
family members. Felipe and Dizon (2009) conducted a study to highlight the asset
accumulation trends in Guatemala. They found that the probabilities of farm investments
were lower among migrants. Education and housing investments were top priority. Few
migrants were inclined towards livestock investments. Migrants belonged to urban areas
were investing in human capital and semi-urban migrants were investing in home
improvements and farm-complementary Agriculture cultural capital.Groggera and Hanson (2010) concluded by studying schooling and earning
patterns among the emigrants and non-migrants in different countries that migrants had a
higher educational level than non-migrants. They also claimed that the migrants had also
better skills for earning than people of origin. Dustmann and Mestres (2010) concluded in
a study that savings and assets accumulation are affected by return plans of immigrants.
Savings and assets accumulation in the home and host countries are related to returning
plans of migrants. The findings of the study show that the immigrants with temporary
return plans place a higher proportion of their savings in the home country. Especially, the
migrants who consider their stay in host countries temporary prefer to accumulate assets in
the form of housing in the home country.Osili (2006) investigated that skilled migrants who have high expectations with
their career and income in return are less likely to be investing in assets in place of origin.
However, they tend to send a larger amount of money to origin families. He concluded that
remittances have the potential to contribute in the economic prosperity of place of origin.
The earnings of migrants also help to accumulate various assets in the country of origin.
Yang (2008) conducted a study of the households in the Philippines whose members went
abroad during the last five years. He found that the migration of people positively affected
the human capital and entrepreneurships at the place of origin. He concluded that due to
migration of family members the child schooling and educational expenditure increased
and child labor decreased. It was also observed that the recipients of foreign remittances
were working more hours in self-employment. They were ready to start relatively capital-
intensive household enterprises with the support of migrants.
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Dorantes, Catalina and Pozo (2008) studied the consumption and asset
accumulation patterns of Mexican households according to their remittance-receiving
patterns and regularity of their remittance reception. They analysed data from a nationally
representative survey carried out by the Mexican Statistical Institute and concluded that
remittances are used in such ways that breed dependency instead of promoting longer term
capital accumulation and economic growth. They found that remittances are mainly used to
finance household consumption, reducing the labour force participation of family members
at the place of origin and diminishing the households long-term ability to prosper on its
own.
Kirdar (2004) studied the migrants return and saving patterns by using a
stochastic dynamic model in Germany. This model gives information about migrants
saving patterns and timings of their return. He also studied the savings and return
migration patterns in the context of the country of origin and migrants demographic
characteristics. This model also focuses on different fiscal policies, employment
opportunities and conditions which enable the migrants to decide about returns. He
concluded that migrants with usual employment but higher savings and with longer
duration of stay are more likely to return. Roushdy, Assaad and Rashed (2009) analyzedthat migration and remittances are more likely to enhance household wealth. They
concluded that the permanent attachment of a household with a migrant member or
reception of remittances on a continuous basis decreases the household poverty by 8
percent. They concluded that migration plays an important role in providing a wider set of
opportunities for young men to make some savings prior to marriage and to gain some
skills that could be useful when returning to home.
Eurostat (2000) found that 74 percent of households receiving remittances used the
money on daily household expenses, 7.3 percent were using this money to renovate, build
or buy houses and 3.9 percent were using remittances for education of family members.
Djajic (2010) studied the attractive investment opportunities available to migrants in thecountries of their origin. He also studied the duration of stay in host countries and saving
behavior of similar migrants. His model predicted an inverse U-shaped relationship
between duration of migration and expected savings in return. He concluded that the desire
of more savings force them to consume less at host countries and push them to return to
countries of origin at earlier. Duration of stay is linked with the desire to generate
sufficient savings which are essential for investment or asset accumulation at return.
2. MATERIALS AND METHODThe study was conducted in two selected villages of Gujrat district. For this
purpose, initially one rural union council (Goleki) was selected randomly from Gujrat
district. Then a list of villages located in Goleki Union Council was prepared. The list of
villages was shared with the Western Union office, Gujrat and two villages Jassoki and
Jhernwali with a high frequency of remittances reception from abroad were selected for
study purposes. The survey population was comprised of household having emigrants from
the selected rural areas. The sampling frame was not available for this study therefore a
baseline survey was conducted by researcher to figure out the households with
international migrants.
In the village Jassoki 320 households had international migrants out of the total
571 households and in Jhernwali 510 households had international migrants out of the
total 751 households. 20 percent households with international migrants from each village
were interviewed randomly. Total 166 family members of selected households were
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interviewed from both villages. An interview schedule was used as a data collection tool.
Data was analyzed by using SPSS (Statistical Package for Social Science) by applying
appropriate tests for detailed analysis.
Table 3: Destination of Pakistan Migrants
Table 3 shows, that 58 percent of emigrants are living in European countries.
Proportion of emigrants living in US was 15 percent and in Middle East region was 17.5percent. Emigrants settled in UK were 7.2 percent and in other Asian countries were 2.4
percent.
Table: 4. Education of Migrants at the Occasion of Migration
Category Frequency Percent
Illiterate 7 4.25 years 25 15.18 years 44 26.510 years 55 33.112 years 26 15.7
14+ years 9 5.4Total 166 100
Table 4 shows that majority of emigrants (33.1 percent) had ten years education at the
occasion of international migration. Emigrants with eight years education were 26.5
percent, with five and twelve years of education were almost equal. Emigrants with
graduation degrees were 5.4 percent and 4.2 percent were illiterate.
Table: 5. Types of Migrants Jobs in Host Countries
Category Frequency Percent
Blue Collar Employment 109 65.7White Collar Employment 19 11.4Own Business 28 16.9Not Yet Working
10 6Total 166 100
Table 5 shows that majority of emigrants were working in blue collar professions in host
countries. Eleven percent emigrants had white collar jobs at different organizations / industries in host
countries. Seventeen percent had established their enterprises and 6 percent had no employment in host
countries.
Category Frequency PercentEurope 96 57.8
UnitedKingdom
12 7.2
United States 25 15.1
Middle East 29 17.5
Other Asian 4 2.4
Total 166 100
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Table: 6. Use of Asset for International Migration
Category Frequency PercentYes 113 68.1No 53 31.9Total
166 100
Table 6 shows that majority of household have sold different type of assets for
international migration of their family members. However, about 1/3 households did not
sell any asset for sending their family members abroad.
Table 7: Types of Assets Sold / Consumed for International Migration
Table 7 shows that majority of households sold Agriculture land for international
migration of their family members. Ornaments were sold by 22 percent households for
international migration of their family members. Fifteen percent households sold a piece of
land, house, shops or a market to meet the financial needs of emigrations. Only 4 percent
households sold livestock for international migration of family members and 5 percent
gathered money by sale of more than two assets.
Table 8: Values of Sold / Consumed Assets at the Time of International Migration
Categories
Mean
Value Frequency Percent
less than100,000
643758 7
101,000-
300,000
256250
32 28301,000-600,000
45400050 44
601,000-900,000
84000014 12
901,000+ 1061111 9 8Total 113 100
Table 8 shows the cost of assets utilized for international migration of family
members. Data reveals that 44 percent households sold different assets valued Rs.
301,000-600,000 for international migration of their family members and the mean value
of consumed assets was Rs. 454000. Assets ranges from Rs. 10100 to Rs. 300000 were
consumed for international migration of family members by 28 percent households and
Category Frequency Percent
Agriculture land 61 54
Any kind of Ornament 24 22Any kind of Property 17 15
Livestock 5 4
Agriculture land + Any kindof Ornaments + Property
6 5
Total 113 100
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mean value of utilized assets was Rs. 256250. Twelve percent households used different
assets with the cost of Rs. 601,000 to 900,000 for international migration of family
members and calculated mean value was Rs. 840000. Only 8 percent respondents reported
that they consumed various assets amounting to Rs. 900000+ for international migration of
their family members, here mean value was counted Rs. 1061111. Few respondents shared
that their consumed assets were valued less than Rs. 100000 and mean value of these
assets was calculated Rs. 64375.
Table 9: Reception of Remittances from Abroad
Table 9 shows the amount of remittances received by native households on a
monthly basis. The figures reflect that 40 percent households were receiving Rs. 20,001 to
30,000 per month from aboard. Twenty one percent native households were obtaining an
amount ranging from Rs. 10,001 to 20,000 on a monthly basis. About 15 percent
households were receiving Rs. 30,000 to 40,000 every month. An amount of Rs. 40,000+
per month was being received by 14 percent households. The rest of households were
receiving an amount near Rs. 10,000 per month.Table 10: Purchase of Assets from Savings
This table shows that majority of households purchased different assets with the
savings from international remittances. Fifteen percent households reported that they did
not purchase any asset despite of savings from remittances.Table 11 shows that majority of households purchased ornaments by using
international remittances. Agricultural land was purchased by 11 percent households and
18 percent purchased different kinds of Properties e.g., house, piece of land, shops etc.
from the remittances. Livestock business was strengthened / re-established by 10 percent
households by using international remittances. Only 8 percent households re-accumulated
agriculture land, ornaments and property with the support of emigrants.
Category Frequency Percent
Less than10,000 17 1110,001-20,000 32 2120,001-30,000 62 4030,001-40,000 23 15
40,000+ 22 14Total 156 100
Category Frequency Percent
Yes 96 85No 17 15Total 113 100
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Table: 11: Types of Assets Purchased from International Remittances
Category Frequency Percent
Agriculture land 11 11
Any kind of Ornament 38 40
Any kind of Property 29 18
Livestock 10 10
Agriculture land+ Any kind ofOrnaments+ Property
8 8
Total 96 100
Table 12: Cost of Re-Accumulated Assets
Category Mean Value Frequency Percent
less than 100,000 883336 6
101,000-300,000 229285 21 22301,000-600,000 518437 32 33601,000-900,000 859687 16 17901,000+ 1364286 21 22Total 96 100
This table shows the cost of re-accumulated assets by households with the support
of emigrants. It was found that 33 percent households re-accumulated the assets valued Rs.
301,000 to 600,000 and mean value of re-accumulated assets were Rs. 518437. The
households those re-accumulated assets valued Rs. 101,000 to 300,000 were 22 percent
and mean value of re-accumulated assets were Rs. 229285.
Figure 1: The Value of Consumed Assets and Re-Accumulated Assets
The households those re-accumulated assets with the cost of Rs. 901,000+ by
using international remittances were 22 percent and mean value of re-accumulated assets
were Rs. 1364286. However, 17 percent households shared that the cost of their newly
Value of Consumed & Re-accumulated Assets
0
10
20
30
40
50
>100
000
1010
00-300
000
3010
00-600
000
6010
00-900
000
9000
00+
Range of Amount (Rs.)
Households(%
Consumed %
Re-accumulated %
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purchased assets ranges from Rs. 601,000 to 900,000 where the mean value of re-
accumulated assets were 859687. Only 6 percent respondents told that the cost of their
newly purchased assets was less than 100,000 and mean value of re-accumulated assets
were Rs. 88333.
Figure 1 reflects that contribution of international remittances in household income
was helping to re-accumulate assets which were consumed for international migration of
family members in different quantity and values. It was observed that the percentage of
households those re-accumulated assets valued Rs. 101000 to 600000 was less than
households those consumed similar value assets. But the percentage of households those
re-accumulated assets valued Rs. 601000 to 900000+ was higher than household those
consumed same value assets at the time of international migration of their family members.
A significant difference in the mean values of consumed and re-accumulated assets were
calculated.
3. DISCUSSIONThis study reveals that emigrants from rural areas of Gujrat are settled in different
countries e.g., Europe, Middle East, United Kingdom, United States, Malaysia and
Thailand. However, a larger proportion of emigrants were living in European and Middle
East regions. With reference to these findings, Esipova and Ray (n.d.) Also documented
that majority of migrants prefers to select European and Middle East countries as place of
destination due to attractive social environment, suitable economic activities and
adjustment facilitation from relatives or friends.
The study describes that emigrants were at different levels of education at the time
of migration. One third emigrants had completed secondary school certificate (10 years),
one fourth had eight years schooling and one sixth had twelve years of education at the
time of departure towards other countries. Maximum reported qualification of emigrantswas graduation but their number was very marginal. Few emigrants were illiterate at the
time of migration. These findings are connected with the Department of Labors (n.d.)
Report where the majority of emigrants had school level qualifications, few migrants were
bachelor degree holders and the rests of them were illiterate. According to respondents,
more than half emigrants were working in blue-color professions in host countries and
most of them were settled in Eastern Europe and Middle East countries. Sixteen percent
emigrants were engaged with their own business and they were residing in the United
States, United Kingdom and Western Europe. Eleven percent emigrants were settled in the
Middle East and enjoying white-collar professions in a dynamic market. These findings are
also endorsed by the International Labor Organization (2004) which provides facts about
migrants working in different host countries.
The report elaborates that the skilled migrant workers have been engaged in high
paid professions in host countries. However, there are thousands of less skilled migrants
who are employed at low-wages in various jobs related to agriculture, cleaning,
maintenance, construction, domestic service, health care and the sex sector. People have
to manage a huge amount of money before initiating the process of international migration.
In case of legal migration, the money is required to pay visa fee, relevant documentation,
shopping, airfare and for adjustment in host countries. But in the case of illegal migration,
a gigantic amount of money is paid to human smugglers for crossing an international
border.
The results of the present study confirm that people consume different assets to
meet such expenditures incurred on international migration of their family members in
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rural areas. Sixty eight percent households shared that they sold different types of assets to
meet the expenditures incurred on international migration of family members. Different
types of assets were consumed for international migration of family members by
households. Lowell and Findlay (2001) endorse the findings of the current study with the
statement that in most of cases the process of migration requires huge amount of money
which is paid by selling family assets. The study reveals that the salient assets consumed
by families were agriculture land, houses, shops, ornaments and livestock with the desire
of socio-economic uplifting in the future. Usually, people belong to rural areas are
associated with agriculture or related business. Therefore, fifty four percent families sold
their agricultural land to meet the expenditures incurred on the migration of their family
members. The families, which had no agricultural land, consumed various ornaments for
this purpose.
Many families also sold different properties e.g., house, shop or plot for
international migration of their family members. In many cases, complete expenditures
incurred on emigration of family members were managed by selling different assets but in
rare cases a supplementary amount was collected by consuming various assets to fill the
deficit in required funding. However, only one third of the sampled households couldafford to send their family members abroad without depriving themselves from their
assets. The study of Afsar, Yunus and Islam (2001) confirms the results of the present
study by narrating that the cost of migration has been financed by selling land or house in
Asian countries. The findings infer that availability of different type of assets make the
process of international migration relatively easy for rural inhabitants. Usually existence of
any asset values more than Rs. 600000 in a household is considered a hope for
international migration of the male member in rural areas. Use of different assets was
making the procedure of international migration easy for local inhabitants. The majority of
households were receiving remittances from abroad on a regular basis.
The value of remittances varied from case to case. However, immigrants living inEurope, the United States and the United Kingdom were sending three times more money
as compared to emigrants settled in the Middle East or Asian countries. European
Investment Bank (2008) also reported that an amount of 7.1 billion Euros transfers to other
countries by migrants every year. The results indicate that remittances were being used to
re-accumulate assets which were consumed at the time of migrants departure from
Pakistan. The findings are confirmed by Adams (1991), he elaborated that the migrants
like to invest their money for accumulation of different assets. The difference in mean
values of consumed and re-accumulated assets authenticators that remittances were helping
in asset accumulation at higher quantity and values in rural areas of Gujrat. Edwards and
Ureta (2001) confirms these results by stating that with the reception of remittances, thehouseholds become able to save sufficiently and accumulate various assets. According to
respondents, the majority of households used agricultural land for international migration
of their family members but preferred to purchase ornaments after getting remittances from
abroad. Few families reported purchase of agricultural land with the financial support of
immigrants. One third native family purchased different kinds of properties e.g., houses,
shops and animals by using financial gift of remittances.
The maximum mean value of the re-accumulated assets was observed Rs. 1364286
whereas the mean value of consumed assets was Rs. 1061111. But the number of
households those re-accumulated assets value Rs. 900000+ was significantly higher than
households those consumed assets within same value. It was found that use of assets,
reception of remittances from abroad and re-accumulation of consumed assets are
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interrelated phenomenon. Remittances were not only contributing in the financial stability
of families but also helping native households to re-accumulate consumed assets instantly.
International migration was considered an immediate source of socio-economic uplifting
hence rural dwellers of Gujrat were keen for emigration by consuming valuable assets.
4. CONCLUSIONIt is concluded from this study that the tendency for international migration by
using different kinds of assets is high among the inhabitants of rural areas of Gujrat. It was
found that most of the emigrants from rural areas of Gujrat were settled in different
European and Middle East countries. For international migration, they had consumed
different family assets but now they had better employment in host countries. They were
sending remittances to native families and inclusion of remittances in local income was
increasing the purchasing power of recipient families. Remittances sent by international
migrants were not only serving to meet the basic needs of life but also to re-accumulate
assets which were consumed at the time of migration of emigrants. Most common assets
used for international migration in rural areas of Gujrat were agriculture land, ornaments,shops, houses, markets and livestock. A significant difference in the quantities and values
of consumed and re-accumulated assets were calculated from the data provided by
respondents. Perhaps, this was the reason that an overwhelming majority were in favour of
international migration by using existing assets in case of financial constraints.
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