Remittance and its effect on poverty and inequality: a case of Nepal
Remittance and its effect on poverty and inequality: a case of Nepal
This paper examines the impact of remittance on poverty and income inequality in the context of Nepal using cross-sectional national survey- Nepal Living Standard Survey, third edition (NLSS3) of 2010-11. We employ a Heckman two-step estimation model with instrumental variables and constructed counterfactual income to investigate the real impact of remittances. We find that remittance has helped in the reduction of poverty ratio by 5.3% but deepened the poverty gap by 7.37% and severity by 9.25%. In terms of inequality, remittance has helped to reduce inequality within the remittance receiving group, however, it also contributed to rising income inequality when compared to non- remittance receiving group.
Salike, Nimesh
64467ab4-1420-426d-87d2-1f6cff7501af
Wang, Jingyi
3137dc23-6373-4280-a835-b633e5301ce4
Regis, Paulo
d696452e-72ef-48bc-9409-80996e297ca7
28 November 2022
Salike, Nimesh
64467ab4-1420-426d-87d2-1f6cff7501af
Wang, Jingyi
3137dc23-6373-4280-a835-b633e5301ce4
Regis, Paulo
d696452e-72ef-48bc-9409-80996e297ca7
Salike, Nimesh, Wang, Jingyi and Regis, Paulo
(2022)
Remittance and its effect on poverty and inequality: a case of Nepal.
NRB Economic Review, 34 (2).
(doi:10.3126/nrber.v34i2.49430).
Abstract
This paper examines the impact of remittance on poverty and income inequality in the context of Nepal using cross-sectional national survey- Nepal Living Standard Survey, third edition (NLSS3) of 2010-11. We employ a Heckman two-step estimation model with instrumental variables and constructed counterfactual income to investigate the real impact of remittances. We find that remittance has helped in the reduction of poverty ratio by 5.3% but deepened the poverty gap by 7.37% and severity by 9.25%. In terms of inequality, remittance has helped to reduce inequality within the remittance receiving group, however, it also contributed to rising income inequality when compared to non- remittance receiving group.
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Accepted/In Press date: 10 November 2022
Published date: 28 November 2022
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Local EPrints ID: 482714
URI: http://eprints.soton.ac.uk/id/eprint/482714
ISSN: 1608-6627
PURE UUID: ad0665e1-a15a-41c0-9d4b-1ba12af5a125
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Date deposited: 11 Oct 2023 16:57
Last modified: 17 Mar 2024 03:57
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Author:
Nimesh Salike
Author:
Jingyi Wang
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