Impact of Remittance on Household Welfare: Evidence from the Western Region of Nepal

This study examines the impact of remittance on household welfare measured by consumption expenditures in the western region of Nepal. We used regional-level microeconomic data obtained from the Nepal Living Standards Survey (2010/2011) and employed Propensity Score Matching (PSM). Our results show that remittance-receiving households spend 34% and 20.33%, respectively, more per capita on agriculture and education than non-remittance-receiving households. However, there is no effect of remittance per capita on food expenditures. The findings of this study will be helpful to the federal-level policy makers in the western region of Nepal in deciding on scaling up migration-related programs.