Role of Remittances on Rural Poverty in Nepal-Evidence from Cross-Section Data

Rohan Byanjankar () and Mira Sakha ()
Additional contact information
Mira Sakha: Nepal SBI Bank

NRB Economic Review, 2021, vol. 33, issue 1-2, 45-72

Abstract: This paper attempts to determine the impact of remittance on rural poverty in Nepal using the microdata set of household risk and vulnerability survey 2016-2018. The cross-sectional analysis has been carried out using a dataset of 2018 with 5,645 households across 50 districts of Nepal. The logit regression model has been used to determine the relationship between poverty and remittances. About 38 percent of rural households received remittances in 2018. About 65 percent of households headed by females received remittance compared to 30 percent of households headed by male counterparts. About 41 percent, 31 percent, and 32 percent of households living in the Hilly region, Terai, and Himalayan region respectively received remittance in 2018. About 1 in every 5 households in rural Nepal is poor. The probability of households falling into poverty reduces by 4.8 percent with a one percent rise in household assets. Remittance receiving households are 2.3 percent less likely to get caught in poverty as compared to remittance non-receiving households. The probability of households plunging into poverty decreases by about 1.1 percent with every 10 percent increase in remittance inflows to households.

Keywords: Remittance; poverty; logit regression (search for similar items in EconPapers)
JEL-codes: C21 F24 I32 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nrb.org.np/contents/uploads/2021/10/Vol-33_art1.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nrb:journl:v:33:y:2021:i:1:p:3

DOI: 10.3126/nrber.v33i1-2.47989

Access Statistics for this article

More articles in NRB Economic Review from Nepal Rastra Bank, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Publication Division NRB ().