Relationship Between Workers’ Remittance Andper Capita Real Gdpin Nepal

Abstract

The study focused on the trendof the remittance and per capita real GDP and impactof remittance in per capita real GDP of Nepal. Secondary data were used for the studycollected from Economic Survey of the Ministry of Finance of Government of Nepal.In this study the trend of workers’ remittance and per capita real GDP of Nepal isshown by calculating the year wise flow of remittance and per capita real GDP. Linegraph is also shown in order to illustrate the trend of remittance and per capita realGDP in Nepal. To test the impact of remittance in per capita real GDP simplecorrelation coefficient and linear regression model was used. The data of remittanceand per capita real GDP were analyzed for 29 years from fiscal year 1990/91 to2018/19. From the study it is found that there is a positive relationship betweenremittance and per capita real GDP in Nepal. The study also showed that the growthrate of per capita real GDP is very low in comparison to growth rate of remittance.The study concluded that the flow of remittance is increasing every year and theworkers remittance play a significant role in the growth of per capita real GDP.