Paper Title :Impacts of Remittance on Household Expenditures in Nepal

Author :Prabin Dongol, Dhruba Bhandari, Bishnu Dev Pant

Article Citation :Prabin Dongol ,Dhruba Bhandari ,Bishnu Dev Pant , (2019 ) " Impacts of Remittance on Household Expenditures in Nepal " , International Journal of Management and Applied Science (IJMAS) , pp. 17-24, Volume-5,Issue-4

Abstract : Growing trend of migration and remittance from foreign employment is an important part of Nepalese economy. This growing trend of migration has benefitted Nepal in form of remittance but if this remittance is not used in productive uses, it can create dependency on them. Thus in this context, this study examines the effect of international remittances on share of household expenditure. We examine different components of household expenditure using OLS regression, nearest neighborhood matching method and to bit regression model using nationally representative survey data gathered from 31 districts of Nepal. Results indicate that remittance receiving households tend to increase their share of expenditure in asset accumulation (e.g. housing and land) and loan repayment. The share of expenditure in food items decreases among remittance receiving households. Surprisingly, remittance receiving households also tend to decrease the share of expenditure on education.

Type : Research paper

Published : Volume-5,Issue-4

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