Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity
1
Department of Economics & Decision Sciences, Western Illinois University, Macomb, IL 61455, USA
2
Department of Political Science & Economics, Rowan University, Glassboro, NJ 08028, USA
*
Author to whom correspondence should be addressed.
Economies 2020, 8(1), 8; https://doi.org/10.3390/economies8010008
Received: 15 October 2019 / Revised: 8 January 2020 / Accepted: 14 January 2020 / Published: 23 January 2020
(This article belongs to the Special Issue Productivity and Efficiency Analysis)
This paper analyzes the effect of earned and unearned remittances on agricultural productivity in Nepal. This approach differs from the existing practice of studying the impact of total remittances on socio-economic outcomes. In particular, we disaggregate total remittances into earned and unearned remittances, and isolate their impacts on productivity—an individual household’s per labor-hour production of all agricultural output at the market value. Methodologically, we follow a three-stage least squares (3-SLS) approach to overcome the potential endogeneity concerns. We provide evidence that unearned remittances are more effective than earned remittances in increasing agricultural productivity. These results can be useful in understanding the migration-remittance-productivity nexus in Nepal as well as other similar socioeconomic societies from South Asia.
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Keywords:
earned remittance; unearned remittance; agricultural productivity; migration; Nepal; 3-SLS
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MDPI and ACS Style
Ghimire, S.; Kapri, K.P. Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity. Economies 2020, 8, 8.
AMA Style
Ghimire S, Kapri KP. Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity. Economies. 2020; 8(1):8.
Chicago/Turabian StyleGhimire, Shankar; Kapri, Kul P. 2020. "Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity" Economies 8, no. 1: 8.
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