Remittance for Economic Growth for Developing Country–in Case of Nepal

 

Deelip Raj Pandey

Chonbuk National University, Korea

Ji Young Jeong, Professor

Chonbuk National University, Korea

Abstract

After the World War II the kind of thought that drag the earth is common place for all the living creature and have to see as world scale has been developing. This thought really matter in every aspects of the nation either business or trade, export or import. In another word world has enter into liberalization stage. In this new era of the word foreign employment has been increased in tremendous way. Labor of one country are movie to another in search of job and his career. When it comes the developing nations the figure might be more in term migrant workers and remittance is one of important part of their GDP.. Remittances remain a key source of external resource flows for developing countries, far exceeding official development assistance and more stable than private debt and portfolio equity flows. For many developing countries, remittances are an important source of foreign exchange, surpassing earnings from major exports, and covering a substantial portion of imports.

By the end of 2016, Nepal south Asian country became the one the most labor exporting country with holding around 30% of GDP by remittance. Which clearly shows that remittance is playing very vital role for the economic balance of Nepal. As we know that Nepal is least develop country still it is struggling to get appropriate economic grow for nations development. Many people across the world are guessing that remittance could be the mile stone for getting its desirable economic growth. According to the foreign employment department of Nepal there were around 512000 labors were exported in 2015/16 with the remittance of Rs66 billions. Nepal became one most remittance receiving country across the world and it really help to improve the life standard of people by rubbing the poverty from the millions of people of Nepal. Having said this but the economic growth has not been improving as it is needed because most portion of the remittance are just spending on nonproductive area and consumption. Remittance cannot able to create the jobs that can help not only individuals but also the nation.

In this piece of research titling the: “The Strategic Polices of Remittance for the Economics Growth –in case of Nepal” I have tried to find out the trend of remittances income in Nepal is shown by calculating the share of remittances in the GDP as a percent of GDP. Bar diagram is also shown in order to illustrate the trend of remittance income in Nepal with the analysis of secondary and primary data.

 

 

Journal of American Academic Research 

© 2019  Copyright by Journal of American Academic Research. All rights reserved.

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