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Push and pull : a study of international migration from Nepal

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  • Shrestha,Maheshwor

Abstract

This paper studies migration choices in the presence of liquidity constraints and varying costs of migration. This paper presents a simple theoretical framework that analyzes migration response to both push and pull factors in such settings. This framework implies that a shock to the push factors in the origin leads to differential observed response to migration to various destinations, as the shocks affect different parts of the wealth distribution. The implications of this framework are tested in the context of international migration from Nepal, using a panel of 452 villages observed at three periods in the 2000s. The analysis uses rainfall shocks and deaths due to conflict as"push"shocks and growth in manufacturing and construction in destination countries as"pull"shocks. The findings show that a rainfall shock that increases household income by US$ 100 increases migration to India by 54 percent but has no effect on migration elsewhere. An increase in conflict, which reduces consumption and amenity of the wealthier more, increases migration abroad, especially from urban areas. An increase in demand from the destination countries, especially the Gulf countries and Malaysia, has strong effects on migration to those destinations. These findings are consistent with the theoretical framework, and suggest the presence of large liquidity constraints. An increase in income can boost migration to India, whereas a reduction in the cost of migration might increase profitable migration elsewhere. The responsiveness to"pull"shocks suggests that households are willing to take advantage of these opportunities.

Suggested Citation

  • Shrestha,Maheshwor, 2017. "Push and pull : a study of international migration from Nepal," Policy Research Working Paper Series 7965, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7965
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    Cited by:

    1. Mishra, Khushbu & Kondratjeva, Olga & Shively, Gerald E., 2022. "Do remittances reshape household expenditures? Evidence from Nepal," World Development, Elsevier, vol. 157(C).
    2. Yvonne Giesing & Reem Hassan, 2021. "Between Hope and Despair: Egypt's Revolution and Migration Intentions," CESifo Working Paper Series 9237, CESifo.
    3. Shrestha, Gitta & Pakhtigian, Emily L. & Jeuland, Marc, 2023. "Women who do not migrate: Intersectionality, social relations, and participation in Western Nepal," World Development, Elsevier, vol. 161(C).
    4. Clemens, Michael A., 2021. "Violence, development, and migration waves: Evidence from Central American child migrant apprehensions," Journal of Urban Economics, Elsevier, vol. 124(C).
    5. Rachana Devkota & Laxmi Prasad Pant & Hom Nath Gartaula & Kirit Patel & Devendra Gauchan & Helen Hambly-Odame & Balaram Thapa & Manish N. Raizada, 2020. "Responsible Agricultural Mechanization Innovation for the Sustainable Development of Nepal’s Hillside Farming System," Sustainability, MDPI, vol. 12(1), pages 1-24, January.
    6. Bossavie, Laurent & Denisova, Anastasiya, 2018. "Youth Labor Migration in Nepal," Jobs Group Papers, Notes, and Guides 29783617, The World Bank.
    7. 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.
    8. Becker, Sascha O. & Ferrara, Andreas, 2019. "Consequences of forced migration: A survey of recent findings," Labour Economics, Elsevier, vol. 59(C), pages 1-16.
    9. Daniele, Gianmarco & Le Moglie, Marco & Masera, Federico, 2023. "Pains, guns and moves: The effect of the U.S. opioid epidemic on Mexican migration," Journal of Development Economics, Elsevier, vol. 160(C).
    10. Paras Kharel, 2019. "International migration and remittances in Nepal Revisiting some "facts", and role of economic diplomacy," Working Papers wp/19/01, South Asia Watch on Trade, Economics and Environment.
    11. Sharma, Hari & Gibson, John, 2020. "Escalation of civil war in Nepal: The role of poverty, inequality and caste polarisation," MPRA Paper 101450, University Library of Munich, Germany.

    More about this item

    Keywords

    Conflict and Fragile States;

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