LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT(LRJSTM)

Author(s):Aliena Poudyal, Prem Kumar Bhaskar

Abstract:Remittance is the major source of income in the context of Nepal. This research paper assesses the recent status of remittance and its contribution to GDP and economic growth. Remittance has been contributing in both micro and macro level that is basic need to country development Poverty and the unemployment has been the core problem and remittance helps to minimize it. Also, remittance maintained the foreign exchange reserve and the balance of payment. However, Maximum numbers of Nepalese are migrating to gulf countries to fulfill the basic needs and for increase in living standard. Major destination for foreign employment is Malaysia, Qatar and UAE because of ease of getting visa. Remittance has been playing positive impact on economic growth of Nepal. Due to COVID-19 pandemic the remittance has been negatively impacting in the GDP of Nepal. The ratio of remittance is declining from 7.1% to 2.8% which is hugely affecting in country development.

As a researcher I had examined an initial part of the paper in data analysis with descriptive statistics by using SPSS tools and excel for Chart and graph incorporating various variable including remittance, economic growth rate and per capita annual growth rate as taking independent variable and taking GDP as a dependent variable. The correlation and multiple regression between dependent and independent variable with various factors such as, unemployment, industrial growth, migration, investment rate, inflation, import, export etc. to see the contribution of remittance on each variable to reduce poverty and the growth for nation. ANOVA test between the dependent and independent variable is examined and has positive relationship. The multiple regressions show the significant relationship between GDP and remittance whereas, GDP has no significance relationship between economic growth rate and per capita annual growth rate. All the data are taken from secondary sources. Ministry of finance, World Bank, Department of Foreign Employment and other legal sources to collected the data.

Keyword(s):Remittance, GDP, Economic growth, per capita annual growth.