Can remittances support development in Nepal?

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Nepal has one of the largest remittances-to-GDP ratios (24% in 2018) and a third of households has at least one member abroad. Dependence on remittances can significantly slow the pace of structural transformation and leave the economy vulnerable to external shocks. In 2018, the Government of Nepal proposed measures to encourage self-employment and the productive use of remittances. A team of local PEP researchers found that higher remittance amounts are linked to left-behind women working fewer hours and lower revenues for household enterprises.
Find out more about the research methods, findings and policy recommendations in the following PEP publications:

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