Document Type

Article

Version Deposited

Published Version

Publication Date

1-23-2020

Publication Title

economies

DOI

10.3390/economies8010008

Abstract

This paper analyzes the effect of earned and unearned remittances on agricultural productivity in Nepal. This approach differs from the existing practice of studying the impact of total remittances on socio-economic outcomes. In particular, we disaggregate total remittances into earned and unearned remittances, and isolate their impacts on productivity—an individual household’s per labor-hour production of all agricultural output at the market value. Methodologically, we follow a three-stage least squares (3-SLS) approach to overcome the potential endogeneity concerns. We provide evidence that unearned remittances are more effective than earned remittances in increasing agricultural productivity. These results can be useful in understanding the migration-remittance-productivity nexus in Nepal as well as other similar socioeconomic societies from South Asia.

Comments

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Published Citation

Ghimire, S. & Kapri, K.P. (2020). Does the Source of Remittance Matter? Differentiated Effects of Earned and Unearned Remittances on Agricultural Productivity. Economies 2020, 8, 8.

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