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Article
Migration, remittance, and agricultural productivity: Evidence from the Nepal Living Standard Survey
World Development Perspectives (2020)
  • Kul Kapri, Rowan University
  • Shankar Ghimire
Abstract
This paper analyzes the relationship between migration, remittances, and agricultural productivity using microdata from Nepal. Instead of focusing on total agricultural yield, a common approach in the existing literature, our innovation is to examine the impact of remittances on household-level agricultural productivity, measured by output per labor-hour. Methodologically, we follow a three stage least squares (3-SLS) method in order to overcome potential endogeneity concerns. Overall results demonstrate that remittance-receiving households exhibit a higher level of productivity. More interestingly, quantile regressions show a bigger effect in households with lower productivity compared to their counterparts, suggesting remittance as a driver of agricultural productivity in Nepal. Additionally, we show that the impact can be different depending on the ecological belt. Given these salient observations, we draw important policy implications to improve agricultural productivity in Nepal and other similar developing countries.
Publication Date
September, 2020
DOI
https://doi.org/10.1016/j.wdp.2020.100198
Citation Information
Kul Kapri and Shankar Ghimire. "Migration, remittance, and agricultural productivity: Evidence from the Nepal Living Standard Survey" World Development Perspectives Vol. 19 (2020)
Available at: http://works.bepress.com/kul-kapri/8/