EFFECT OF REMITTANCES ON SOCIO-ECONOMIC FACTORS OF HOUSEHOLDS IN DISTRICT MOHMAND, KHYBER PAKHTUNKHWA, PAKISTAN

Abstract

Remittance is one of the key indicators for the development of any developing country like Pakistan. This study investigated what socio-economic factors affect remittances in district Mohmand Khyber Pakhtunkhwa. Simple random sampling technique for selection of sample was used through Krejcie and Morgan formula.The current study mainly based on primary data and used a standard questionnaire. The data was collected from 162 sample household heads in the study area. In this study simple linear regression model was used for the analysis. The study has used two dependent variables such as education expenses and consumption expenses and one independent variable, which were remittances of households. The results of the regression model indicates that education expenses has positive and significant relationship with remittances and consumption expenses has also found positive and significant relationship with remittances in the study area. It concluded from the current study that the education expenses and consumption expenses are the main factors and it mainly focused and depend on remittances, especially in district Mohmand. The study suggested that foreign remittances improve the socio-economic situation and decision making of households, but spending habits do not prioritize investment, Instead of focusing on opulent household equipment. It is recommended that the households of district Mohmand make better use of their limited resources and invest in both long and short term opportunities.