Role of Foreign Employment on Economic Status of Rural Households: A Case Study of Bagmati Rural Municipality-3, Lalitpur

Abstract

The study entitled“Role of Foreign Employment on Economic Status of Rural Households:A Case Study of Bagmati Rural Municipality-3, Lalitpur”has been studied for partial fulfillment for the master degree in Rural Development. The general objective of this study is to assess the contribution of remittances in economic status of rural households in the study area.The specific objective was to examine the utilization pattern of remittance in the study are a and to analyze the socio-economic status of migrant household before and after recipient of remittance. This study is based on the explorative as well as descriptive type of research design.50 households had been taken among 280 migrant households from ward no. 3 of the study are a by using systematic random sampling design.This study is based on primary data and secondary data in order to meet stated objective of the study. The structured questionnaires are used to collect data through field survey. The study found that the sampled respondents were spending more of the income for the purchase of real estate followed by basic consumption and to pay the loan which is considered as unproductive sector. Regarding investment, the respondents were spending money on business purposes by starting up of small businesses like hotel,cosmetic shop, grocery shops etc followed by expenditure on agricultural tools and for the purpose of education of the family members which is considered as productivesector. Thus, it can be concluded that the average annual investment on a productivesector is lower than the average annual expenditure on unproductive sector. It maybedue tolack ofknowledge and lack of proper policy of government for the contributionof remittance. This study also found that remittance from foreign employment has helped therespondentsto receivesomewide range ofbenefitsand improvetheir financial, social and economic condition but it cannot be said that it has improved their life tremendously. On the other hand, because of lack of knowledge about proper investment and utilization of remittance, long term benefits are not observed.Thus,vocational training should be provided to the family members and returnees in order to make investments on profitable businesses either individually or in a group of like minded people.