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Research Report: Impact of Remittance on Household Welfare: Evidence from the Western Region of Nepal

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  • Adhikari, Laxmi D.
  • Saghaian, Sayed

Abstract

This study examines the impact of remittance on household welfare measured by consumption expenditures in the western region of Nepal. We used regional-level microeconomic data obtained from the Nepal Living Standards Survey (2010/2011) and employed Propensity Score Matching (PSM). Our results show that remittance-receiving households spend 34% and 20.33%, respectively, more per capita on agriculture and education than non-remittance-receiving households. However, there is no effect of remittance per capita on food expenditures. The findings of this study will be helpful to the federal-level policy makers in the western region of Nepal in deciding on scaling up migration-related programs.

Suggested Citation

  • Adhikari, Laxmi D. & Saghaian, Sayed, 2022. "Research Report: Impact of Remittance on Household Welfare: Evidence from the Western Region of Nepal," Journal of Food Distribution Research, Food Distribution Research Society, vol. 53(01), March.
    • Handle: RePEc:ags:jlofdr:339665
    DOI: 10.22004/ag.econ.339665
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    References listed on IDEAS

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    1. Sridhar Thapa & Sanjaya Acharya, 2017. "Remittances and Household Expenditure in Nepal: Evidence from Cross-Section Data," Economies, MDPI, vol. 5(2), pages 1-17, May.
    2. Wagle, Udaya R. & Devkota, Satis, 2018. "The impact of foreign remittances on poverty in Nepal: A panel study of household survey data, 1996–2011," World Development, Elsevier, vol. 110(C), pages 38-50.
    3. Mendola, Mariapia, 2008. "Migration and technological change in rural households: Complements or substitutes?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 150-175, February.
    4. Cynthia Bansak & Brian Chezum, 2009. "How Do Remittances Affect Human Capital Formation of School-Age Boys and Girls?," American Economic Review, American Economic Association, vol. 99(2), pages 145-148, May.
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