Nepal: Selected Issues

IMF Staff Country Reports, April 6, 2020

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Nepal: Selected Issues

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Bibliographic details

• Published: April 6, 2020
• Series: IMF Staff Country Reports

Study scope and methodology

• Measures how Nepal’s households change expenditure patterns and labor supply in response to remittances.
• Data source: Nepal Household Risk and Vulnerability Survey—2016.
• Empirical method: propensity score matching.
• Pages: 27; Volume: 2020; Issue: 097; Series: Country Report No. 2020/097; Stock No: 1NPLEA2020002; ISBN: 9781513539768; ISSN: 1934-7685.
• Publication date: April 6, 2020.

Stylized facts on migration and remittance reliance

• Provides stylized facts on migrant workers and remittance-recipient households (HH).
• Reliance on remittances, both at the macro and household levels, makes Nepal highly vulnerable to shifts that could diminish remittance inflows.
• The slowdown in growth of remittances has been significant since 2016, owing to weak economic performance in major remittance-sending economies and less outward migration.

Key findings on expenditure patterns

• Remittances have supported greater consumption of productive goods, including:
  • durable goods,
  • education,
  • health.
• Analysis based on propensity score matching indicates positive effects of remittances on household consumption composition toward productive categories.

Key findings on labor supply and participation

• The study analyzes the effect of remittances on labor market participation of left behind household heads using propensity score matching.
• Results show remittances do not discourage labor supply of remittance-receiving family members.

Subjects and keywords addressed

• Subjects: Balance of payments, Fintech, Income, Infrastructure, Labor, Labor supply, Migration, National accounts, Population and demographics, Remittances, Technology.
• Keywords: Asia and Pacific, CR, East Asia, expenditure pattern, Fintech, fintech payment, Fintech payment method, Global, Income, Infrastructure, invoice payment, ISCR, Labor supply, Migration, remittance, remittance recipient, remittance-recipient household, Remittances, South Asia, Southeast Asia.

Source: Nepal: Selected Issues, April 6, 2020 (IMF Staff Country Report No. 2020/097).

Content in this bundle

• Nepal: Selected Issues; IMF Country Report No. 20/97; February 28, 2020
  • Nepal: Selected Issues; IMF Country Report No. 20/97; February 28, 2020 (Markdown version)
  • Nepal: Selected Issues; IMF Country Report No. 20/97; February 28, 2020 (PDF)