Facilitating Local Nepali Investment Opportunities using Remittance
Remittance promotes investments in productive farming assets by providing poor households with extra income
Abstract
In an economy with high investment returns, remittance promotes investments in productive farming assets by providing poor households with extra income. In 2005, remittances to Nepal equaled 32% of the national GDP. Some scholars claim that migration causes economic dependency by depleting the local workforce, thereby slowing the development of industry and damaging local employment opportunities. However, new research from Institute for Social and Environmental Research-Nepal (ISER-N) shows that in an economy that guarantees high profit from investment, the remaining household members of migrant families invest remittances in productive farming assets. Thus, programmess that increase return from investment, such as rural economic development programs, help capitalize on remittances and spur the growth of the Nepali economy.
This work is part of the ‘Labor Outmigration, Agricultural Productivity and Food Security’ project
Citation
Kamei, Akito & Chaudhary, Indra. (2017). Facilitating Local Nepali Investment Opportunities using Remittance, Policy Brief 10. Institute for Social and Environmental Research-Nepal
Links