Secondary data extracted from the report published by CBS and analyzed quantitatively using descriptive analysis,linear regression, correlation, and multiple regression models. With the help of various analytical tools available in SPSS, Excel and NCSS; the hypothesis testing, forecasting variables, determining relationships among variables and multiplier effects of remittance on variables were examined. The study analyzed 19-year data on remittance, consumption, investment, and GNP. Data pertains from 2000/01 to 2018/19. Various statistical tools and econometric models were used for the study. A Keynesian economic model is used for this study. Since the data published by the government are used for making national-level policy; the data used in the study is valid and reliable. The data of various macroeconomic variables and remittances collected for nineteen years. The collected data is entered into the software. Only the needed data from the secondary data collected like the annual report, journals were entered in the software. Different tools that are mentioned above are used to analyze the data. The tools have been used as per the requirement of the study. For analyzing the data tool like minimum, maximum, mean, standard deviation, Karl Pearson’s correlation coefficient, regression coefficient, T-test, V.I.F test, Cronbach alpha, D-W test and F-test have been used on the collected data.
Analyzing the data shown that the remittance has been found to increase significantly from the early period of 2000/2001. In 2000/2001 remittance stood at Rs. 9798 million which increased by multifold to Rs. 944531 million. Similarly, GNP, private consumption, government expenditure, imports, and disposable income has increased rapidly over the period. However, with regard to investment and exports, the trend seems to be erratic with ups and downs over the period. The multiplier effects on remittance on consumption, imports, investment, and GNP were also calculated. The multiplier effect of remittance on consumption, investment, imports, and GNP are 0.89, 1.25, 0.32 and 2.14 respectively. One unit increase in remittance would induce a rise in respective variables by the multiplier amount. The study has also carried out multivariate analysis to find out the relationship between remittance and consumption, imports and GNP. There seem to a positive and significant relationship between remittance and variables of consumption, imports, and GNP.
For millions of people worldwide where there are no sources of livelihood in their home countries, remittance provides poor households the basis for survival. Money sent home to the families has not only provided them the basic needs of life but also helped to empower them economically. In Nepal’s case too, remittance has been a boon in reducing poverty in the next 20 years if part of resources is put to productive use. It is a reality that remittance will continue to play a significant role in improving the living standards of millions of Nepalese for many years to come. However, the government and policymakers must understand that this does not bode well for the country in the long run. While in the short term, the remittance they send might seem beneficial for the country and their families, it cannot be a long-term solution.
ACKNOWLEDGMENTS
The research entitled “Dynamics of Remittance Utilization in Nepal” has been prepared under the graduate research project as partial fulfillment of Master of Business Administration (MBA) under a program of faculty management, Pokhara University.
I extend my deepest gratitude to my GRP supervisor Mr. Dipendra Karki for his support, encouragement, motivation, and help throughout the dissertation work.
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