IMPACT OF REMITTANCE ON HOUSEHOLD INCOME AND LIVING STANDARD IN DHADING

Abstract

The primary objectiv e of this study was to examine the effect of consumption patterns, household size, remittances, and education on household income and living standards in Dhading, Nepal. It aimed to understand how these factors influence financial stability and overall qua lity of life among the 385 remittance receiving households surveyed. The study employed a combination of descriptive and causal research designs. This research utilized descriptive statistics, correlation analysis, and regression analysis to analyze the da ta using SPSS version 26. The findings indicate that consumption patterns, household size, remittances, and education have a significant positive impact on household income and living standards. Descriptive statistics reveal that remittances account for a substantial portion of household income, with most recipients reporting improved financial security and enhanced access to essential services. Correlation analysis shows significant positive associations between the independent variables and indicators of living standards, including housing quality and asset ownership. Furthermore, regression analysis confirms that consumption patterns, household size, remittances, and education significantly affect both household income and living standards. However, the s tudy also highlights potential drawbacks, as many households reported increased social anxiety due to the absence of family members working abroad. In conclusion, this study provides evidence that these factors play crucial roles in enhancing household inc ome and living standards in rural Nepal, while suggesting that policymakers should consider strategies to promote local economic development and reduce reliance on remittances.