The role of remittances in Nepal’s economy, politics, and society

Abstract

For many countries worldwide, remittances play a crucial role in driving the domestic economy, thereby contributing to political and socilal stability. Nepal, a South Asian country, receives substantial remittance inflows each year, which contribute to national development. Drawing on secondary data, this paper clarifies the contributions of remittances to Nepal’s domestic economy, politics, and society. It argues that although remittances have made positive contributions to GDP growth and certain aspects of the economy, they have not been effectively leveraged to promote political and social stability at home.