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Economies 2017, 5(2), 16; doi:10.3390/economies5020016

Remittances and Household Expenditure in Nepal: Evidence from Cross-Section Data

1
UN World Food Programme, Patandhoka Road, Chakupat, Lalitpur 10, Nepal
2
Saraswati Multiple Campus, Tribhuvan University, Thamel 26, Kathmandu
*
Author to whom correspondence should be addressed.
Academic Editor: Ralf Fendel
Received: 5 December 2016 / Revised: 3 May 2017 / Accepted: 18 May 2017 / Published: 23 May 2017
View Full-Text   |   Download PDF [263 KB, uploaded 25 May 2017]

Abstract

This paper examines the effect of remittances on household expenditure patterns applying propensity score matching methods that allow designing and analyzing observational data and enable reducing selection bias. We use data from the Nepal Living Standards Survey 2010/2011. In general, remittance recipient households tend to spend more on consumption, health and education as compared to remittance non-receiving households. Although the findings do not clearly provide evidence of either the productive or non-productive use of remittances, expenditures on non-food investment categories, such as durable goods, health and education, are more apparent among remittance-receiving households compared to remittance non-receiving households, which signal the prospect of a sustainable long-term welfare gain among the former. View Full-Text
Keywords: remittances; household expenditure; Nepal; propensity score matching remittances; household expenditure; Nepal; propensity score matching
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Thapa, S.; Acharya, S. Remittances and Household Expenditure in Nepal: Evidence from Cross-Section Data. Economies 2017, 5, 16.

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