title: Understanding Expenditure Patterns of Remittance Receiving Households in Dhading, Nepal: A Mixed-Methods Study
Creators: name: Basnet, S
Publisher: name: Liverpool John Moores University
Year: 2024

description: Introduction International migration has risen significantly in recent years. About 184 million people i.e., 2.3% of the world’s population lives outside of their country of nationality and almost half are from Low-and Middle-Income Countries (LMICs). Many people cross borders in search of more economic and social opportunities. Nepal is an LMIC from southern Asia, where half of all Nepalese families rely on financial support from relatives working abroad. The amount of remittance sent to the LMIC is about three-times higher than the official development assistance and can play a significant role in the overall development and human welfare in the recipient countries. Whilst there is much research conducted on migration and expenditure analysis of Remittance Receiving Households (RRHs), less priority is given to the expenditure analysis based on the social and demographic characteristics of RRHs. This programme of research uses prospective information, in the form of diary recording on incomes and expenditures to understand and analyse expenditure patterns based on the socio-demographic characteristics of RRHs. It also explores the impacts of remittance incomes on the livelihoods and the productive uses of remittance by the RRHs. Method This study employed a four-stage mixed-method sequential design. Study one is a field survey, using a structured questionnaire with the heads of RRHs (n=322). Study two is a diary study (n=283); the diaries were provided to the migrants’ households to enter their daily incomes and expenditures for a year. Study three presents the analysis from the merging of study one and study two. Lastly, study four is an analysis on semi-structured interviews with the household (HH) head of the RRHs (n=16) who took part. The household survey and diary study were administered to collect quantitative data for social demographic characteristics and incomes / expenditures of RRHs who took part. Semi-structured interviews were conducted and thematically analysed to understand the impacts of remittance on livelihood and to explore the productive uses of remittance by the RRHs. The results from mixed- method analyses were presented interpreting all four studies for a better understanding and analysis of the subject area based on themes generated through both quantitative and qualitative analysis. Results Expenditure analysis under socio-demographic characters of RRHs showed significant differences in various categories of households’ expenditures such as food, clothes, health, education, and durables. Expenditure analysis on health, education and clothes indicated that poorer RRHs tend to spend as much as other economic groups of RRHs. Similarly, there were significant statistical differences found in other households’ expenditures according to the socio-demographic characteristics of RRHs. Semi-structured interviews explored the livelihood impacts of migration and remittance explaining its positive consequences (better food, shelter, health, education, finance, social etc.) and negative consequences (family disintegration, declining young population, social and national drawbacks, depletion of human resources etc.). Interviews also explored how business and investments posed higher risks while generating higher returns, most RRHs either preferred secure investments (land and buildings) or savings and deposit in the bank. Moreover, the study on the impact of remittances on the recipient households has generated particular interest among policy makers and researchers, especially regarding how remittances are spent or used and what the effects of remittances are on the expenditure patterns of the recipient households contributing to local and national economy. Overall, the research confirms that RRHs’ expenditure contributes towards the relationship between the quality of life, saving and investment. The outcome of this mixed method research is relevant to academic scholars examining the expenditure patterns of RRHs prospectively under social and demographic characteristics of the households. In addition, study findings support and encourage RRHs to save and invest part of the remittance in the productive sector.