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Remittances in Nepal: Boon or Bane?

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  • Chandan Sapkota

Abstract

Nepal is one of the highest recipients of remittances (percentage of GDP) in the world. For a small land-locked economy battered by a decade-long Maoist insurgency (1996--2006), prolonged political instability, slow growth rate and large exodus of youths for employment overseas, high inflow of remittances bears a huge significance both at micro and macro levels. Exploring various facets of high migration and remittances, this article shows remittance-induced Dutch disease effects and policy laxity to improve investment climate in Nepal. Since it is costly to sterilise the impact of remittances each year, it might be prudent to learn to live with it and gradually channel remittances to productive usages with a goal to boost productivity.

Suggested Citation

  • Chandan Sapkota, 2013. "Remittances in Nepal: Boon or Bane?," Journal of Development Studies, Taylor & Francis Journals, vol. 49(10), pages 1316-1331, October.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:10:p:1316-1331
    DOI: 10.1080/00220388.2013.812196
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    2. Lekh Nath Paudel, 2022. "Remittances and the reconfiguration of rural finance in Nepal (1900–1960)," Environment and Planning A, , vol. 54(4), pages 822-838, June.
    3. Tomoya Suzuki, 2019. "Counterfactual Inflation Targeting in Nepal," South Asian Journal of Macroeconomics and Public Finance, , vol. 8(2), pages 97-117, December.
    4. Kishor Sharma, 2015. "Trade Policymaking in a Land‐locked Developing Country: The WTO Review of Nepal," The World Economy, Wiley Blackwell, vol. 38(9), pages 1335-1349, September.
    5. Fan Yang & Krishna P. Paudel, 2023. "Nutrition, multidimensional poverty and income: The case of Nepal," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1962-1984, October.
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    7. Ramesh Chandra Paudel & Tara Prasad Bhusal, 2021. "Role of Workers Remittances in Export Performance of Nepal: Gravity Modelling Approach," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 33(1-2), pages 1-13, October.
    8. Kapri, Kul & Ghimire, Shankar, 2020. "Migration, remittance, and agricultural productivity: Evidence from the Nepal Living Standard Survey," World Development Perspectives, Elsevier, vol. 19(C).
    9. Thi Huyen Le & Yoshinori Nakagawa & Yutaka Kobayashi, 2021. "Conditions under Which Rural-to-Urban Migration Enhances Social and Economic Sustainability of Home Communities: A Case Study in Vietnam," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    10. Kamal Raj Dhungel, 2018. "The Link between Remittance and Economic Growth: An ARDL Bound Testing Approach," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 30(2), pages 1-18, October.
    11. Dhruba Bhandari, 2020. "Are Households Utilizing Remittance on Quality Education? An Empirical Study from Nepal," Journal of Development Innovations, KarmaQuest International, vol. 4(1), pages 179-195, July.
    12. Janmaat, J. & Lapp, S. & Wannop, T. & Bharati, Luna & Sugden, Fraser, 2015. "Demonstrating complexity with a roleplaying simulation: investing in water in the Indrawati Subbasin, Nepal," IWMI Research Reports 229585, International Water Management Institute.
    13. Hari Sharma & John Gibson, 2019. "Civil War and International Migration from Nepal: Evidence from a Spatial Durbin Model," Working Papers in Economics 19/06, University of Waikato.
    14. Kimberly A. Eddleston & Peter Jaskiewicz & Mike Wright, 2020. "Family firms and internationalization in the Asia-Pacific: the need for multi-level perspectives," Asia Pacific Journal of Management, Springer, vol. 37(2), pages 345-361, June.
    15. Erol BULUT, Abdiqadar Abdignani MOHAMED, 2018. "Remittances and Poverty Reduction in Somalia," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 4.
    16. Hari Sharma & John Gibson, 2020. "Effects of International Migration on Child Schooling and Child Labour: Evidence from Nepal," Working Papers in Economics 20/07, University of Waikato.
    17. repec:kqi:journl:2017-1-6 is not listed on IDEAS
    18. Paudel, Ramesh C. & Burke, Paul J., 2015. "Exchange rate policy and export performance in a landlocked developing country: The case of Nepal," Journal of Asian Economics, Elsevier, vol. 38(C), pages 55-63.
    19. Shankar Ghimire & Kul Prasad Kapri, 2020. "Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity," Economies, MDPI, vol. 8(1), pages 1-15, January.
    20. Dambar Uprety, 2017. "The Impact of Remittances on Economic Growth in Nepal," Journal of Development Innovations, KarmaQuest International, vol. 1(1), pages 114-134, February.
    21. Rohan Byanjankar & Mira Sakha, 2021. "Role of Remittances on Rural Poverty in Nepal-Evidence from Cross-Section Data," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 33(1-2), pages 45-72, October.
    22. Forsyth, Tim, 2021. "Time to change? Technologies of futuring and transformative change in Nepal’s climate change policy," LSE Research Online Documents on Economics 107544, London School of Economics and Political Science, LSE Library.

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