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Multiculturalism and Social Work | San Francisco State University

Use of Overseas Migrants' Remittances to the Extended Family for Business Investment: A Research Note

Author: Sofranko et al.,S. J.
Author Background:
Date Sept. 1999
Type Journal
Journal Title: Rural-Sociology
Volume/Pages 64(3) 464-481
Subject Matter Community Development; International; Pakistan; Migrant
Abstract Examines extended family influences on the use of remittances from transnational migrants, drawing on interviews with 170 family heads in a small community in Pakistan. Results show that relatively little remittance income from family members working in the Middle East was channeled into business investments, despite government incentives offered to migrant households. Most of the extended family measures used in the research are statistically unimportant in explaining level of business investment. There thus appears to be little support for either modernization theory or social capital arguments on the role of the extended family. Of five operationalized extended family dimensions, only one was related to business investment, & that positively. However, family considerations are not irrelevant. The best predictors of business investment were a preexisting level of business exposure/experience in the family & whether the family head was aware of business investment opportunities. Results raise questions about the need to reconceptualize family influences beyond the formal dimensions of extended family structure. 4 Tables, 1 Figure, 37 References. Adapted from the source document