Analysis of remittance inflow and its utilization in dhanusha district

Remittances have become an integral part of the Nepalese economy because they play an important role in raising household well-being and aggregate economic growth of the country. Remittances at the household level alleviate poverty, improve standard of living, and offer funds for increased education opportunities. The study here aims at Dhalkewar, one of the wards of the Municipality in the District of Dhanusha, aiming at assessing remittance effects as well as remittance use toward improved standards of living within families. Questionnaire field surveys were used in conducting the research as well as securing the data collected from secondary sources that corroborate findings. Data were collected through interviews from among the following key informants: teachers, ward secretaries, community leaders, and businessmen. The sample of 120 households was drawn by random selection from a list of 511 remittance-sending households under proportionate sampling procedures for all nine wards of the municipality. Findings of the study highlight the reality that remittances contribute a significant volume of foreign exchange and are solely responsible for maintaining the remaining dependents from migrant workers' families. Although they function very well as a tool for poverty reduction, the majority of migrant workers take a loan to finance their migration and spend a high percentage of earnings on loan repayment. This research highlights the need for schemes of financial planning and investment incentives so that remittances get utilized effectively and contribute towards economic viability in the long term and reduced dependence on overseas work.