IMPACT EVALUATION OF REMITTANCE IN NEPAL: A CASE STUDY OF KAILALI DISTRICT

This is a descriptive cross-sectional study based on the data related to remittance income of
respondent households collected from a Municipality and three VDCs of Kailali. The objective of this
study are to collect information on the type, volume, and mode of transfer of remittance and, more
importantly, to identify foreign employment destination, and its financial cost. Hence, all the households
within the study area receiving remittance income for 12 months of the year 2013 were regarded as
universe/population of the study. The result of the study shows significant improvement in the living
standard of remittance recipient households in terms of education, healthcare expenditure, fuel
consumption pattern, source of drinking water, toilet use pattern, access to information, banking habit,
insurance policy holding, and women empowerment. Nevertheless, a large proportion (more than 61
percent) of remittance is found to be used in consumption expenditure. It is, therefore, essential to
formulate policy measures to divert remittance income to productive sector. Furthermore, 74 percent of
HHs have used informal loan to bear the financial cost of foreign employment.