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Analyzing Household Poverty And Remittance In The Koshi Province Of Nepal
Ganesh R Joshi, Rajendra P Mishra and Gokul P Bohara
IJED, Vol. 18 No. 2,
(2026)
Remittances have contributed to reducing poverty in many countries in South Asia, including Nepal. This paper aims to analyze the determinants of poverty and the role of remittances in influencing poverty in Koshi Province of Nepal. The authors use cross-sectional data from the Nepal Living Standards Survey 2022, covering 1,416 households, and employ an instrumental variable, Heckman probit, and probit models for analyzing the determinants. It is shown that there is no endogeneity and no sample selection bias. The results indicate that gender, household size, income (excluding remittances), household assets, remittances, urban/rural status, and the household head’s education level are significant factors influencing poverty. Urban households face greater poverty risk than rural ones, and remittances have contributed significantly to bringing households out of poverty. As remittance-receiving households are less efficiently mobilizing resources, this implies the implementation of policies for mobilizing such resources in the productive sector, including the agricultural sector.
Keywords: Household, Instrumental variable, Koshi province, Nepal, Poverty, Probit, Remittance
