, Volume 30, Issue 2, pp 171-192

Labour migration and investments by remaining households in rural Nepal

Purchase on Springer.com

$39.95 / €34.95 / £29.95*

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access

Abstract

Existing studies on the development effects of labour migration and remittances provide conflicting evidence and many suffer from self-selection bias. Furthermore, in spite of the significance of labour migration to the Nepalese economy, there are very few studies that formally analyse the development effect of labour migration in this region. Consequently, propensity score matching and a ‘difference-in-difference’ method is used to estimate the effect of labour migration and expectations to receive remittances from these migrants on investments by the remaining households in Chitwan, Nepal. The results suggest a positive role of labour migration and their likelihood of sending remittances on investments in agriculture, a type of productive investment.