Impact of Worker’s Remittances on Economic Growth in Nepal’s Economy

Sanjib Sharma Dulal

Master's thesis

Abstract:

Workers remittance inflow has positive effects on GDP growth in Nepal. This research paper evaluates the contribution of remittances to Nepalese economy and investigates the determinants of remittances receipt in Nepal. Descriptive and econometric methods were used to achieve the study objectives. This study finds that using the remittances fund for the productive sector and managing quality emigrants participation has indeed influential causal relations putting positive impacts on increasing economic growth through quality remittance income. Remittance proves a sustainable and reliable source for the government to fulfil the resource gap. Remittance has provided acute support for governmental fund raising. At a time when the countrys major economic indicators are not favorable. It is recommended that, the government should play an active role to promote foreign employment by initiating and perceiving to the policy of economic diplomacy as well as a healthy enabling environment for business to encourage domestic as well as foreign investment. A strong and stable political environment enables investment friendly situation. For this, the government as well as the political leaders should give priority to ending the transition period and order to ensure the security of the private investment. The bright side of remittances depends on revival of the economy by using the physical, human and social capital to diminish its negative impact on the economy.

Keywords

Economic growth, Official Development Grant, Remittance, Growth rate, Migration, Human Capital, Employment, Gross Domestic Product, Foreign Development Index, Nepal

Language used: English

Date on which the thesis was submitted / produced: 11. 4. 2016

Thesis defence

• Supervisor: Oldřich Ludwig Dittrich, MPH Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management