25.06.2018

In addition, such equipment oftentimes leads to a subsequent increase in recurrent expenditure as most of the devices consume energy or fuel and require costly maintenance. In the surveyed area, less than five per cent of the returnee migrant workers have invested in productive assets, such as land, housing, three wheelers, and, to a smaller extent, small businesses.

For Nepal, a recent study by the Nepal Rastra Bank suggests that 80 per cent of the sample households have no other significant means than remittances to manage their regular expenses. In relation to use of remittance, the sample households reported that 25 per cent is used for loan repayment, 24 per cent for daily consumption, 10 per cent for education and health, 4 per cent for social work, 3 per cent for household assets and 1 per cent for productive work. Interestingly, the study demonstrates that the families are saving around 28 per cent of the remittances they receive.