Linkage between labor migration, remittance and self employed business activities in Nepal

Abstract

This paper investigates the linkage between international labor migration, remittance and ownershipof self employed business activities in Nepal using a nationally representative cross sectional data. Thepurpose of the paper is to test the hypothesis propounded by New Economics of Labor Economics. Atwo stage instrumental variable Probit model is used to assess the relationship between the variables.The findings suggest that household with migrant members is seven percent more likely to own anenterprise while impact of remittance is negligible and insignificant. This paper concludes that theskills and knowledge about technology acquired abroad by migrant labor could be instrumental forexpanding the self employed business activities in Nepal contributing to overreaching objectives ofpoverty alleviation and creating jobs in the domestic market in the long run.
 Keywords: International labor migration; Remittance; Self-employment; Business activities;Entrepreneurship

Picking the Right Arrow for the Target: Modelling the Economic Impact of Remittance on Agribusinesss Entreprenuership and Youth Employment in Sub-Saharan Africa

“…Since the outbreak of the global pandemic, African economies have struggled with declining growth rates albeit improvements in the first quarter of 2019 from 2.3 percent in 2017 to 2.5 percent in 2018 (World Bank, 2019). The cascading effects of dwindling growth have created slugglish momentum in global economic trade with African economies experiencing the heightening impacts of shortfalls in demand for agricultural exports and increasing tariffs on exportation of primary commodities (Adhikari, 2017). While the demand for African commodities has declined in the face of globalization, the share of remittances to African countries has doubled (Cai et al, 2020).…”