Remittances and the economy of Nepal: The impact on emigration

For a small landlocked economy, Nepal is the nineteenth largest remittance receiver in the world. With the growing remittance income, Nepal is progressing in its economic and social and demographic aspects, however, this phenomenon might have adverse effects on the country's economy and its development. With an increase in remittances, Nepal has been able to reduce its poverty with its illiteracy rate along with the living condition. Despite such progress, Nepal is in the verge of suffering from too much dependency in its remittances where the economy is unable to export but import substantial number of commodities. In addition, brain drain, lack of labour supply, threat to the food security, increase in conspicuous consumption patterns (drinking and partying), inability to develop a culture of saving and a sharp increase in the prices of domestic products can damage Nepal's economy in the long run. These factors can further effect Nepalese intentions to emigrate directly. This study will try to proclaim the good and the bad impacts of remittances in the case of Nepal.


Gurung, D. (2019). Remittances and the economy of Nepal: The impact on emigration. ASERC Journal of Socio-Economic Studies, 2(2), 107-118. DOI:10.30546/2663-7251.2.2.107