Abstract

Author:
Dilina Nepal, Maheshwor Adhikari

Doi: 10.26480/jtwe.02.2024.64.68

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

This article deals with the trend of foreign employment and remittance and their impact on Nepalese economy. Nepal ranks 19th position in top remittance receiving countries of the world covering 22.68% of GDP. Remittance inflow to country follows increasing trend reaching up to 1220.5595 NPR billion in fiscal year 2022/23 (up to mid -June). Malaysia (26.5%) is the top destination Of Nepalese youth for employment followed by Qatar (26.4%) and Saudi Arab (22%) respectively. Correlation study between remittance inflow and HDI value showed positive (r = 0.879) and significant relationship at 10% level of significance indicating that with the increase in remittance inflow HDI is also increasing. Similarly, remittance and GDP had very low degree of significant and positive correlation (0.0210) at 10% level of significance. Likewise, the share of agriculture to GDP is found to be decreasing. Similarly, correlation between import and remittance was found to be positive, significant and moderate (0.4103). Skyrocketing of remittance inflow in Nepal over a decade is leading to the rise in exchange, imports, inflation and trade deficit. As the volume of remittance is increasing, Nepalese economy has turned in consumption based economy leading to Dutch disease symptom.