Socio-Economic cotribution of foreign employment (A case study of Siddhipur VDC, Lalitpur district)
| dc.contributor.advisor | Bijay Shreshtha | |
| dc.contributor.author | Rajkarnikar, Rashmee | |
| dc.date.accessioned | 2024-12-12T06:30:23Z | |
| dc.date.available | 2024-12-12T06:30:23Z | |
| dc.date.issued | 2010 | |
| dc.description.abstract | Migration of people from one place to another is a usual phenomenon since the beginning of human civilization. The migration in the beginning was for the sake of food and exploring new places for security purpose. But gradually the migration took the shape in diverse forms and now has become a very essential and common in each and every corner of the world. Three key factors are driving migration and will continue to fuel this kind of movement for many years. They are i) the "pull" of changing demographics and labour market needs in many industrialized countries; ii) the "push" of population, unemployment and crisis pressures in less developed countries; and iii) established inter-country networks based on family, culture and history. Migration and foreign employment has become a way of life to many educated youth of the country. The number of people migrated for foreign employment in Nepal, till mid- March 2009 is recorded as 1,432,224. The migration has concentrated in the Gulf countries (more than 65.14%) and maximum being in Malaysia (31.82%). Though the foreign employment in Nepal is a decades old issue, there is no authentic statistics in terms of number involved in it. Beside that there is serious lack of data regarding real contribution of remittance in the national and local community level and lacks proper information relating to the utilization of remittance and its impact on socio-economic condition of the household and community at the origin of foreign migration. And the facts regarding the changes brought in the gender role and empowerment of migrant's wives due to the foreign employment is little known. There is lack of individual level information of the dependents of the foreign employee in terms of added responsibility and assumption of changed role. Therefore, this study on Socio-economic Contribution of Foreign Employment - A Case Study of Siddhipur VDC, Lalitpur District, was carried out with the general objective of this study is to analyze and examine the socio-economic consequences of foreign employment on the national economy and household level. The followings are the specific objectives of the study. o to assess economic contribution of foreign employment on national and household level; o to analyze the changes in the gender role; and o to study the socio-economic empowerment of the migrant's wives. To fulfill the above mentioned objectives, as a methodology of the study, both primary and secondary data and information are considered. Standard questionnaire was prepared and interviews were conducted in Siddhipur VDC. A data collection technique was chosen in accordance with the level of understanding likely to arise from their use. For analyzing contribution of foreign employment (Remittance) on National economy, secondary information was reviewed. Collected data were stratified, tabulated and analyzed in appropriate and purposive ways. A computerized SPSS program was used to show the interrelation between remittance and national economic growth using regression analysis. The world scenario shows that, international migrant remittances have become an important source of external finance in developing countries. Remittances had generated a positive effect on the economy through various channels such as savings, investment, growth, consumption, and poverty and income distribution. At the national level, remittances had contributed significantly to the GDP. At the community level, remittances had created multiplier effects in domestic economy, producing employment opportunities and spurring new economic and social infrastructures and services, especially where effective structures and institutions have been set up to pool and direct remittances. The poverty reducing and income distribution effect of remittances is also significant. In many countries, a large portion of remittances are invested in real estate, purchasing houses, or other investments. Remittances had also fuelled inflation, disadvantage the tradable sector by appreciating the real exchange rate, and reduce labour market participation rates as receiving households opt to live off of migrant's transfers rather than by working. Moreover, remittance's contribution to growth and poverty had reduced the incentives for implementing sound macroeconomic policy or to institute any needed structural reforms. In Nepal, income from remittance has increased to Rs. 188.0 billions during mid Maymid June 2008. It is widely believed that official records for the remittance economy represent just the tip of the iceberg; particularly as most remittances are transferred informally. The official record shows a dramatic increment in the incoming remittances. Despite the huge trade deficit, the country is having surplus in the current account because of the growing remittances. The data gives the glimpse of GDP from the year 2000/01 till 2008/09 and the corresponding remittance received. It was found that, during the year 2000/01 share of remittance in GDP was 2.22%. This share reached to 17.04% percent in 2007/08 and in 2008/09 it has reached 20%. On an average, the share of remittance to GDP was 11.21 percent during the review period from 2000 to 2009. World Human Development Report, 2009 claims that, relative size of remittance inflows as percentage of GDP is 15.5% Three regressions were run in SPSS programme to examine the contribution of remittance to GDP. It shows that, remittance income and EAP appear to be the most relevant variables to raise real GDP in Nepal. The GFCF and other items have also significant impact on increasing real GDP in Nepal. Similarly, this study also focused on the contribution of the out migration / foreign employment at the household level. For the purpose, Siddhipur Village Development Committee (VDC) has been chosen to quantify the exact contribution of foreign employment on the household income, changes in the gender role, and socioeconomic empowerment. Physical development has been one of the positive outcomes of the migration (foreign employment) in Siddhipur VDC. Behavioral changes are slow to come by and usually take a generation or more to become visible. Foreign employment has helped to increase the economic conditions of the people of the Siddhipur village. It was Page xvi observed that, remittance money is spent in maintenance of houses, construction of new buildings and purchase of land. All these investments are considered unproductive investment in economic terms. Social impact of migration could be considered indirect impact of migration. Such impact can be seen in the women groups of the family. The absence of husband, not only cause hardship to the women, it also bought opportunities. As a problem among the migrant's wife, loneliness was more serious than anything else. The study had also explored the changes in role of women folks in the country of origin due to husband going abroad for foreign employment. It was observed that majority of the husband's responsibility like assisting in harvesting, household cash management, representing social organizations etc. shifted to the wife of the migrants after husband went abroad. The study further focused on the socio-economic empowerment of the migrant's wives in the Siddhipur VDC. The four key elements of empowerment - i) Access to information; ii) Awareness about the basic rights; iii) Efforts made for capacity building; and iv) Decision making were assessed in the process of the studied. To conclude, remittances had generated a positive effect on the economy through various channels such as savings, investment, growth, consumption, and poverty and income distribution. Though, it has positive impact, its major contribution is visible at the household and community level only. It has not created socio-economic impact and long term development of the country due to lack of strategic planning for the utilization of remittance. For the purpose, policies and plans based on updated information on migration are required. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14540/23380 | |
| dc.language.iso | en_US | |
| dc.subject | Socio-Economic | |
| dc.subject | Foreign employment | |
| dc.title | Socio-Economic cotribution of foreign employment (A case study of Siddhipur VDC, Lalitpur district) | |
| dc.type | Thesis | |
| local.academic.level | M.Phil. | |
| local.institute.title | Central Department of Economics |