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Authors
Prabin Dongol
Dr. Dhruba Bhandari
Dr. Bishnu Dev Pant
Published Year
2019
Research Type
Journal Articles

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.