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REMITTANCES AND ITS EFFECT ON ECONOMIC GROWTH IN NEPAL

초록/요약

ABSTRACT As Nepal receiving huge amount of money through remittance and as the government reforming its policy and legal measures to send more migrant labor, it is necessary to understand the effect of remittance in the economy. There are different arguments made by researcher on the effectiveness of remittance in the economy. Some says it will alleviate poverty, improve health, education, and develop entrepreneurship. Likewise, some argues it will help the economic growth especially for large populated developing countries. They also says remittance has extensively support the macroeconomic aspects, thus develop economy. Many of them also argue remittance has negative impact such as increase inflation, increase consumption, import and made dependable to the other countries. In this context, the main objectives of this paper are to find out the effect of remittance in economic growth in Nepalese perspective. The result revealed that there is strong positive effect of remittance on GDP growth. This shows the positive relationship between the two variables and has much support for the view of a robust link between remittance and growth. The result shows that the positive effects of remittance on GDP growth which consistent with the prior studies as mentioned in the literature review in chapter three. The study carried out based in a data from 1980-2013 using regression analysis using ordinary least square method. Key words: Remittance, economic growth in Nepalese perspective.

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목차

CHAPTER I 1
INTRODUCTION 1
1.1 General Background 1
1.2 Statement of the Problem 3
1.3 Purpose of the Study and importance of the Study 4
1.4 Limitations of the Study 4
1.5 Justification of the Study 5
CHAPTER II 6
OVERVIEW OF NEPALESE ECONOMY AND REMITTANCE 6
2.1 Structure and Brief Status of Nepalese Economy 6
2.2 Remittance and its trend 12
2.3 Current Trends 14
2.4 Benefit of remittance in Nepal 16
2.5 Policy, Law and Structural Adjustment 17
2.5.1 Policies and Law 17
2.5.2 Structural Mechanism 19
2.5.3 Recruitment Agencies 19
CHAPTER III 21
LITERATURE REVIEW, HYPOTHESIS AND RESEARCH METHODOLOGY 21
3.1 Literature Review 21
3.2 Hypothesis 25
3.3 Research Methodology 25
CHAPTER IV 26
EMPIRICAL ANALYSIS AND DISCUSSION 26
4.1 Empirical Analysis 26
4.2 Variable Description 26
4.2.1 Gross Domestic Product (GDP) 26
4.2.2 Remittance 26
4.3 Model specification 27
4.4 Estimation result and Interpretation 28
4.4.1 Regression Analysis 28
4.4.2 Interpretation 28
4.5 Discussion 29
CHAPTER V 31
CONCLUSION AND RECOMMENDATION 31
Conclusion and Recommendation 31

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