An analysis of foreign migration destination choice and remittance induced consumption expenditure of Nepalese rural households
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Department of Economics
Abstract
This thesis examines the factors affecting an individual’s decision to select a migration
destination and the impact of remittance sent by foreign migrants on
consumption in rural Nepalese households. The study uses Nepal Household Risk
and Vulnerability Survey (NHRVS) panel data spanning from 2016 to 2018, produced
by the World Bank. We estimate the multinomial logistic regression model
to identify the effect of household assets on the choice of migration destinations
among India, OECD, Gulf, and Asia. We conclude that household asset accumulation
is one of the key determinants of the destination choice of individuals in
rural households. Specifically, households with higher asset endowments are more
likely to choose OECD countries, followed by the Gulf region, Asia, and India.
Moreover, through the use of 2SLS, the study highlights the importance of remittances
as a driving force behind enhancing household consumption, welfare, and
human capital accumulation within rural households.