The impact of foreign remittances on poverty in Nepal: A panel study of household survey data, 1996–2011

Udaya R. Wagle, Satis Devkota

Research output: Contribution to journalArticlepeer-review

17 Scopus citations

Abstract

Using data from the longitudinal panel surveys of 1996, 2004, and 2011, this paper examines the dynamics of foreign remittances and their impact on poverty in Nepal. The intent is to explore how foreign remittances have evolved and impacted poverty and economic well-being of households. Focusing on a consistent set of households across the three survey rounds in a balanced panel format helps examine the effect of foreign remittances with appropriate controls. Results from methodologically consistent, random-effects regressions that correct for potential attrition and heterogeneity bias support significant poverty-reducing and, more accurately, economic well-being-enhancing effects of foreign remittances especially when originating in countries other than India. This and other findings are valuable to the assessment of policies on utilizing foreign labor migration and remittances as a vehicle to reduce poverty in Nepal.

Original languageEnglish (US)
Pages (from-to)38-50
Number of pages13
JournalWorld Development
Volume110
DOIs
StatePublished - Oct 2018

Bibliographical note

Publisher Copyright:
© 2018 Elsevier Ltd

Keywords

  • Economic well-being
  • Foreign remittance
  • Nepal
  • Panel data
  • Poverty

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