Nexus between Foreign Remittance and Secondary Level Private School Enrollment in Nepal:  A Comprehensive Analysis

Abstract

This study investigates the relationship between secondary level private school enrollment and key economic indicators in Nepal, namely per capita GDP and remittances. The research uses quantitative techniques and secondary data analysis, applying a vector error correction model (VECM) to investigate dynamics over both long-term and short-term periods. This study used analytical and descriptive methodologies in a quantitative fashion. The variables were measured, and the effect of independent factors on the dependent variable was quantified, using secondary data. In order to investigate the main goal of the study, the time series method analyses were conducted. The EViews statistical tool, version 10, was then used to analyze and interpret the collected data. The findings reveal significant correlations between economic prosperity and private school enrollment, emphasizing the pivotal role of economic factors in shaping educational choices. While rising per capita GDP suggests improvements in living standards, remittances positively contribute to household income, potentially boosting school enrollment rates. On the one hand, increasing per capita GDP indicates higher standards of living and remittances represent an additional source of household income, which might help increase school enrollment rates. Still, there were also lessons in these data that are relevant today — and the game serves as a reminder of how much work we still have to do to eradicate inequities and make opportunities equal for all children. The findings point to the necessity of targeted policies in favor of the private education sector and towards broader economic growth, focusing on educational equity and access in Nepal. It also highlights the need for more academically rigorous outcome evaluations that investigate underlying mechanisms linking these relationships and for longer-term monitoring of uptake trajectories to better inform educational and economic development interventions.