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

Udaya Wagle and Satis Devkota

World Development, 2018, vol. 110, issue C, 38-50

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.

Keywords: Foreign remittance; Poverty; Economic well-being; Nepal; Panel data (search for similar items in EconPapers)
JEL-codes: I3 J1 J6 R2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:110:y:2018:i:c:p:38-50

DOI: 10.1016/j.worlddev.2018.05.019

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