Economic dimension of remitance in Bhagawatimai rural municipality Dailekh, nepal

Abstract

The transfers, which are made by migrants who live and work abroad to people back home, usually involve products or financial instruments. It is important to emphasize that remittances only include payments made by workers who have been engaged in foreign economies for a minimum of one year; payments made by independent contractors are excluded (IMF,2024). According to the Nepal Rastra Bank (NRB), Nepal's remittance inflows have shown significant growth over the past decade. This study attempts to analyze the economic impact of remittance in the rural area where job opportunities are limited. In order to fulfill the objective of the study, primary data were collected from Bhagawatimai Municipality of Dailekh district, Nepal using structured questionnaire. Bhagawatimai Rural municipality which lies in the rural area of Karnali province is purposively selected as a representative area in terms of rural agriculture focus and limited job opportunities. Microsoft Excel was employed for data entry and analysis, utilizing simple descriptive statistics for interpretation. Findings reveal that the majority of remittance contributors are male aged 20–30, with a religious composition predominantly Hindu. Educationally, most individuals have completed secondary education, with a high percentage married. Malaysia emerges as primary destinations for overseas employment. Notably, 95 percent of households continued working post-remittance, with agriculture being a significant sector. The study concludes several key points: remittances serve as a substantial income source for households, reducing the necessity for overseas employment, if local opportunities were available; limited education levels drive many families towards foreign employment; economic necessity rather than better opportunities in urban areas motivates overseas work; domestic sectors, particularly agriculture, require development to provide competitive alternatives. Remittances have marginally improved access to healthcare and education, further. Post-remittance, household infrastructure investments have increased, alongside greater mobile phone ownership, indicating improved communication avenues.