The Effects of Income of Foreign Workers on Families’ Consumption and Savings Pattern Behaviors in District Kech, Balochistan

Abstract

Employees’ remittances play a momentous role in influencing the consumption and savings behaviors of households in developing regions. International labor migration seems an ordinary action in the province of Balochistan due to the dearth of job opportunities. The primary aim of study is to scrutinize the effects of income of foreign workers on families’ consumption and savings pattern behaviors in District Kech, Balochistan. Moreover, the closed-ended questionnaire has been designed to collect primary data with the help of stratified random sampling. The size of respondents (family heads) is 200 for this study. The theoretical models were developed with the help of Keynesian consumption theory. Moreover, the technique of data analysis was ordered logistical regression and descriptive statistics to check the households’ behavior. The findings of the study show that the inflow of workers’ remittances affects the behavior pattern of households’ consumption and saving expenditures since the total monthly households’ consumption likely increases by 0.30 units when one unit increases in workers' remittances and monthly households’ savings likely increase 0.33 units if one unit increases in workers' remittances.The study suggest that the government should establish proper mechanisms for training these workers so that they will beable to avail better jobs with handsome salaries in international markets and also encourage the households to invest in localmarkets to improve the economic progress of the country.