The Inflow of Foreign Remittances in Rural Punjab: The Determinants

In this paper, an attempt was made to analyze two issues relating to the inflow of remittances in the migrant households of rural Punjab. Firstly, the distribution pattern of remittances receiving migrant households as the volume of per household remittances. Secondly, causes of receiving different volumes of remittances by households. The results showed that in short to medium periods, remittances remained a stable and significant source of migrant's household income. In the long term, as more migrants get legal status in the destination country, or their families join them, build their own houses, or start their businesses, they may revise their portfolio choice. The study also found that the high per capita domestic income of the migrant households back at home and the increased stay of the migrants in the destination countries negatively impact the inflow of households remittances. However, there was a positive relationship between the inflow of per household remittances and the number of family migrants abroad. Similarly, illegal migrants send more remittances than legal migrants. The migrants in developed countries sent more remittances than migrants of developing countries. The study also found that altruism predominates as more remittances were received from children and spouses than other relatives.