IMF Staff Country Reports

Nepal: Selected Issues

April 6, 2020

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Nepal: Selected Issues, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

This Selected Issues paper on Nepal measures the extent to which Nepal’s households change their expenditure patterns and labor supply in response to remittances, using the Nepal Household Risk and Vulnerability Survey—2016 and employing a propensity score matching method. This study provides stylized facts on migrant workers and remittance-recipient households (HH), and then analyzes the effect of remittances on HHs' expenditure patterns and labor supply. Reliance on remittances, both at the macro and household levels, makes Nepal highly vulnerable to shifts that could diminish remittance inflows. The slowdown in growth of remittances has been significant since 2016, owing to weak economic performance in major remittance-sending economies and less outward migration. This study also analyzes the effect of remittances on labor market participation of left behind household heads, using a propensity score matching method. The results show that remittances have supported greater consumption of productive goods (such as durable goods, education and health), without discouraging labor supply of remittance-receiving family members.

Subject: Balance of payments, Fintech, Income, Infrastructure, Labor, Labor supply, Migration, National accounts, Population and demographics, Remittances, Technology

Keywords: Asia and Pacific, CR, East Asia, Expenditure pattern, Fintech, Fintech payment, Fintech payment method, Global, Income, Infrastructure, Invoice payment, ISCR, Labor supply, Migration, Remittance, Remittance recipient, Remittance-recipient household, Remittances, South Asia, Southeast Asia

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2020/097

  • Stock No:

    1NPLEA2020002

  • ISBN:

    9781513539768

  • ISSN:

    1934-7685

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