REMITTANCES AND DEVELOPMENT IN NEPAL: A DISAGGREGATED ANALYSIS

Mr. Shiva Hari Adhikari (Nepal Administrative Staff College)

Remittance flows to low/middle-income counties are on a continuous rise and this scenario applies to Nepal as well. There is a constant increase in the number of Nepalese migrating for foreign employment and in remittance earnings. Remittance is contributing significantly in Gross Domestic Product and is emerging as a backbone of Nepal’s economy. However, ways remittances contribute to social development entail many facets to explore because they affect development in multiple ways. This study attempts to analyze the possibility that remittances positively contribute to social development, considering educational and health development as its proxies. Based on disaggregated educational enrollment and nutrition data by district for the latest available year that is 2009, this study analyzed the impact of remittances on school enrollment and improvement in health status of families who remain at home. It was assumed that remittances are not only spent on daily consumption but are also invested in education and health of the household members. The results show significant relationship between remittances and school enrollment whereas, insignificant between remittances and health. This indicates that remittances may serve as a contributing factor in educational enrollment for social development.

POWERPOINT PRESENTATION