Effect of microeconomic factors on remittance in nepal

Abstract

Remittances play a crucial role in the economic stability and development of many countries, particularly those with significant migrant populations. The study examines how the remittance is affected by macroeconomic data. Research using both descriptive and causal comparison methods has been conducted in order to meet the specific goal of the study. The study's findings show that the money supply, inflation rate, import, GDP, and export are all related and have a linear relationship with remittance. The regression analysis aimed to examine the impact of selected macroeconomic variables on remittance inflows using a least squares approach. Furthermore, remittance has a linear relationship with money supply, inflation rate, import, GDP, and export. The regression result explores that remittance is positively impacted by money supply and Export where money supply is statistically significant but export is insignificant at 1% level of significance respectively. The impact of inflation rate, import and export have insignificant impact on remittance as all the included variables have p-value greater than 0.05.

The study suggests that external factors such as global oil prices, interest rates in host countries, and geopolitical tensions also play a significant role in determining remittance trends. Keywords: Inflation Rate, Money Supply, GDP, Export, Import