Remittances and Household Welfare: Evidence from Nepal’s Survey Data

Rohan Byanjankar, Guna Raj Bhatta, Baljeet Singh and Neluka Devpura

Emerging Markets Finance and Trade, 2025, vol. 61, issue 8, 2490-2506

Abstract: The paper investigates the effect of cash remittances on household welfare using Nepal Household Risk and Vulnerability Survey 2018. We employ village-level migration ratio as instrumental variable to resolve the potential endogeneity. We observe that cash remittances play a pivotal role in expanding household expenditures pertaining to food, energy, clothes, durable goods, education and agricultural investment. However, the effect is not pronounced for health expenditure, home improvement and ceremonial expenses. Our findings suggest differential effects of cash remittances by gender and location.

Date: 2025
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DOI: 10.1080/1540496X.2025.2451181

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